Categories: Sourcing Guide

6 Steps for Importing from China

China is rapidly becoming a production superpower. Importing from China has proved to be a successful strategy for many enterprises to purchase globally. Good quality and cheap products can increase your profits and improve the profitability of your store more easily. In this article, Toptrade as a professional purchasing agent, guides you through the import process, so that you are fully prepared to avoid potholes along the way.

Here is a step-by-step guide. Let’s take a look at how to import from China and what you can do to make the process smoother and more efficient.

1. Select the Products to Import

If you want to importing from China that are good value for money and can boost your shop’s profits to help pinch business growth, you need to have some clear positioning. If you are developing a new concept or are unsure of what to sell, read our guide on the best products that importing from China.

It is still vital to ensure that your products meet the following guidelines before trying to bring them into your country.

From a profitability point of view, the products you choose to import should have:

  • A profit margin of at least 30-50%
  • A stable and sufficient demand
  • Low maintenance requirements in terms of transport, warehousing and/or storage (i.e. no need for climate control or special handling needs)
  • No laws in your state or country prohibiting its sale

In addition to these basic attributes, the following factors should be taken into account when selecting goods for import.

Import Taxes:

Importing from China should naturally consider tariff issues. Most products are subject to import taxes (often called duties) which are collected in addition to federal and local sales and use taxes. In the US, goods with a customs value of less than $800 are duty free, so no additional taxes are charged. If you plan to import goods of higher value, customs duties should be a consideration when sourcing products.

Product Restrictions:

According to the US CBP (Customs and Border Protection), “a number of product categories are banned or restricted to protect the economy and security of the United States, safeguard the health and well-being of consumers, and protect domestic plant and animal life.”

Before working with a supplier and making your first purchase, it is important to know if these regulations apply to any goods you plan to import. Failure to comply can result in fines, delays, confiscation of goods and even legal penalties.

If you have questions, contact your local port of entry.

2. Find a Reliable Supplier

Once you have decided to import certain products, make a list of Chinese suppliers who can obtain that product for you.

For a beginner with no experience of dealing with Chinese exporters, a sourcing company may be a better option. It can help you complete importing from China more efficiently and is a time-saving and reassuring option, but only if you choose a reliable agent. This allows you to establish contacts with trusted sources and gives you access to suppliers you may not be able to find on your own. However, it will cost you an intermediary fee of 3-15% of the purchase price, which is a commission service fee.

3. Examine the Product

When you find a supplier, you can ask them for product samples and information about the manufacturing plant. This will help you to understand the quality of the product and make you feel more comfortable in working with the supplier.

Price is important, but quality is paramount.

4. Classification and Calculation

Identify the 10-digit tariff classification number for each item you are importing. These numbers, together with the certificate of origin, are used to determine the duty rate you must pay at the time of importation. A land cost calculation is then carried out. You may not know the exact cost of something until your goods arrive. In these cases, you need to estimate costs as accurately as possible. It is completely normal that the unexpected expenses that may occur during transportation may sometimes cause your total landed cost to fluctuate. Then, once you have the actual final costs, check them against the estimates you used. Only in this way, importing from China can become an effective way to improve profits.

5. Placing an Order

Place an order with the supplier, shipper or exporter and determine the shipping terms to be used. Once you have selected a supplier, request a P/I (pro forma invoice or quotation) for your potential purchase, including a uniform system number, description and value for each item. Your P/I must show weight and packing dimensions as well as the duration of your purchase. And confirm the shipping terms( FOB,EXW,CIF, etc) and payment terms(TT,L/C, Alibaba Trade Assurance or paypal) with the supplier according to your actual situation.

6. Arrange Cargo Transport and Customs Clearance

Choose between express( UPS, Fedex, DHL, etc) or sea freight(LCL,FCL) depending on the quantity or other nature of the product you are purchasing.

When clearing goods through customs, the following documents are required:

  • Packing list
  • Certificate of origin
  • Bill of lading
  • Customs bond
  • Commercial invoice

When your order arrives, be prepared to pay import duties and arrange for the pick-up and transport of your products.

Check for damage and contact your supplier to inform them that the goods have arrived.

Toptrade is a reliable and excellent sourcing agent. Based on the Yiwu international market and 20 years of experience, we specialize in Yiwu representation. Importing from China smoothly, we are your most economical and labor-saving choice!

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