How to Import Goods from China – A Comprehensive Guide

Finding Reliable Suppliers

Once you’ve decided on the products you want to import, the next step is to find reliable suppliers. Chinese suppliers are typically either factories that manufacture goods or trading companies that source products from multiple factories. Here’s how to source potential suppliers:

1. B2B Marketplaces: Online marketplaces like Alibaba, AliExpress, and Global Sources host thousands of Chinese suppliers. You can search these platforms by product category, price, location, and other criteria to shortlist potential suppliers.

2. Supplier Directories: Supplier directories provide information on a large number of factories and trading companies. You can use these directories to find potential trade partners and contact them directly.

3. Trade Shows: Trade shows are an excellent way to meet potential suppliers face-to-face. Major trade shows in China include the Canton Fair, Global Sources Trade Show, and the East China Import and Export Commodity Fair.

4. Reference Checks: Before finalizing a supplier, consider checking their references or looking them up on SupplierBlacklist.com, a platform where importers can report issues with suppliers.

5. Customs Brokers: If you’re unsure about sourcing and vetting suppliers on your own, consider hiring a customs broker. Customs brokers are professionals who assist importers in meeting federal requirements, including finding and vetting suppliers.

Negotiating with Suppliers

Once you’ve identified potential suppliers, it’s time to initiate contact and negotiate terms. Here’s how:

1. Initial Contact: Start by sending an email or message introducing yourself and your business, expressing interest in the supplier’s products, and requesting further information, such as product catalogs, minimum order quantities (MOQs), and pricing.

2. Sample Orders: If a supplier’s prices and terms are satisfactory, consider requesting a sample or placing a small trial order to test the quality of their products.

3. Negotiating Terms: Once you’re happy with a supplier’s products, negotiate terms such as pricing, freight, deposit, and packaging details. Remember to keep communication clear and concise, and consider using platforms like WeChat for faster responses.

4. Contracts and Agreements: Before placing a full order, consider signing a purchase agreement or contract that clearly defines the details of the transaction, including product specifications, shipping terms, and payment terms.

Import Costs and Customs Procedures

Importing goods from China involves various costs, including product costs, shipping costs, and import duties or taxes. Here’s a breakdown of these costs:

1. Product Costs: This is the price you pay to the supplier for the goods. It’s typically negotiated and agreed upon before placing an order.

2. Shipping Costs: Shipping costs depend on the mode of transport (air, sea, rail, or courier), the distance, and the weight and volume of the goods. It’s advisable to get quotes from multiple freight forwarders to compare costs.

3. Import Duties and Taxes: Nearly all products imported from China are subject to import taxes, also known as tariffs or duties. These are charged in addition to federal and local sales taxes and are typically calculated as a percentage of the product’s value.

4. Customs Procedures: Importing goods requires compliance with customs procedures, which include filing necessary documentation, paying duties and taxes, and obtaining clearance from customs authorities. A customs broker can assist with these procedures.

Identifying Quality Products to Import from China in 5 steps 

Distinguish Authentic from Counterfeit Products

In the sea of China’s product offerings, it’s vital to discern genuine items from knock-offs. To import quality goods, keep your eyes peeled for signs of authenticity.

Simplicity is Key

Chinese exports often include multi-functional, complex items. However, their quality might not always be reliable. So, go for simple goods that allow for easy quality assessment.

Regulatory Compliance is a Must

Before importing, make sure your chosen products adhere to safety and regulatory standards in your country. This will help you dodge legal hurdles in the future.

Demand Analysis

Before importing, conduct a thorough market demand analysis for potential products. Opting for high-demand items in your target market boosts your chances of success.

Supplier Reputation Check

Don’t forget to scrutinize your potential suppliers. Look into their credentials, customer feedback and history to ensure you’re partnering with a reputable supplier.

Import Costs and Customs Procedures

Importing goods from China involves various costs, including product costs, shipping costs, and import duties or taxes. Here’s a breakdown of these costs:

1. Product Costs: This is the price you pay to the supplier for the goods. It’s typically negotiated and agreed upon before placing an order.

2. Shipping Costs: Shipping costs depend on the mode of transport (air, sea, rail, or courier), the distance, and the weight and volume of the goods. It’s advisable to get quotes from multiple freight forwarders to compare costs.

3. Import Duties and Taxes: Nearly all products imported from China are subject to import taxes, also known as tariffs or duties. These are charged in addition to federal and local sales taxes and are typically calculated as a percentage of the product’s value.

4. Customs Procedures: Importing goods requires compliance with customs procedures, which include filing necessary documentation, paying duties and taxes, and obtaining clearance from customs authorities. A customs broker can assist with these procedures.

Shipping and Logistics

Arranging shipping and logistics is a critical part of the import process. Here are some common shipping methods:

Sea Freight

Sea Freight, or ocean freight, is the process of shipping goods from one place to another via sea routes. It’s the most cost-effective way to transport large volumes of goods globally, though it does take longer than other methods. More details can be found here: Ocean & Sea Freight from China. 

Full Container Load (FCL) Shipping

FCL shipping is the most affordable option for larger shipments, as you will be required to book an entire container (either 20ft or 40ft) for your goods. This option is ideal for businesses shipping large quantities of goods, as it offers better economies of scale.

Less than a Container Load (LCL) Shipping

LCL shipping allows you to pay only for the space your goods occupy within a container, making it an ideal choice for small businesses and individuals shipping smaller quantities of goods. In LCL shipping, a freight forwarder will consolidate multiple shipments into one container

Rail Freight

Rail Freight is a method where goods are transported from China to Europe using the extensive railway network. It’s an economical and environmentally friendly method of transportation, which can be particularly useful for bulk goods and heavy items. This method usually takes longer than air freight, but is typically less expensive. More details can be found here: Rail Freight From China to Europe.

Full Container Load (FCL) Shipping

FCL shipping is the most affordable option for larger shipments, as you will be required to book an entire container (either 20ft or 40ft) for your goods. This option is ideal for businesses shipping large quantities of goods, as it offers better economies of scale.

Less than a Container Load (LCL) Shipping

LCL shipping allows you to pay only for the space your goods occupy within a container, making it an ideal choice for small businesses and individuals shipping smaller quantities of goods. In LCL shipping, a freight forwarder will consolidate multiple shipments into one container

Directly Importing Your Product from Chinese Suppliers

Below are some of the most prominent platforms where you can find major exporters in China:

• Alibaba
• Aliexpress
• Global Sources
• Yiwu

Alibaba and Aliexpress are the most common platforms for sourcing major Chinese exporters. Alibaba is a hub for factories and specialized trading companies that typically require higher minimum order quantities. Aliexpress, on the other hand, allows you to import from resellers, often in smaller quantities, but at a higher price.

An alternative way to find reliable Chinese suppliers is by attending trade shows, where many of the best suppliers, who don’t typically advertise, can be found. The Canton Fair, China’s largest trade show, is an ideal venue to locate a plethora of suppliers. Attending industry-specific trade shows can also be beneficial in identifying specialized suppliers. A large portion of top Chinese imports are sourced via these platforms.

China’s Premier Trade Show: The Canton Fair

These platforms can also be beneficial if you’re specifically seeking inexpensive products to import from China. However, we don’t generally recommend this approach due to potential quality concerns.

Use A Sourcing Company To Import Products From China

A professional sourcing service is another safe way to import goods from China. Sourcing services are often the safest way to find the most profitable products to import from China. A sourcing company can find those manufacturers that your competitors won’t be able to find for many rare excellent products exported from China.

If the sourcing company is China-based, it will have the advantage of finding in Chinese, using local connections, and using their existing suppliers’ database. For a more in-depth look at how to engage with a sourcing company and to find the best sourcing agents in China, consider reading this guide on finding the best sourcing agents in China.

Lastly, the old school way: You can visit the areas where the product is manufactured and find its producers. Sometimes, you may find a great supplier who doesn’t list himself on Alibaba or any other sourcing websites. This approach requires more time and effort, but it could lead to discovering suppliers that are off the beaten path and can provide unique and profitable products.

After Import: Quality Checks and Sales

Once your goods have arrived, it’s time to check their quality, ensure proper labeling and packaging, and start selling. Here’s what to do:

1. Quality Checks: Inspect the goods for any defects or quality issues. If there are any problems, contact your supplier to discuss solutions.

2. Labeling and Packaging: Check that the goods are properly labeled and packaged. This includes information such as product details, manufacturing company, order size, and any necessary instructions or warnings.

3. Sales and Marketing: Once you’re satisfied with the quality of your goods, it’s time to start selling. This could involve listing your products on online marketplaces, setting up your own online store, or selling through a brick-and-mortar store.

Strategize for Lower Price and MOQ

Before diving into price negotiations, be sure to request quotes from two or Four suppliers. Having multiple quotes gives a clear understanding of the product’s actual market value. In China, it’s important to remember that price and quality are directly proportional; unusually low prices often suggest inferior product quality.

The chances of obtaining a lower price can be influenced by factors such as varying cost differences among suppliers, different shipping terms (like FOB, FCA), and high MOQs.

Once you’ve gathered sufficient cost information, you’re ready to negotiate. Nowadays, prices in China have become more standardized, offering less room for negotiation. However, with effective negotiation tactics, you can potentially reduce the quoted price by 8 to 12%. Moreover, adept negotiation could even lower the quoted MOQ to half of the initially quoted figure.

Essential Incoterms for Importing Products from China

When it comes to importing goods from China, familiarizing yourself with certain shipping terms, known as Incoterms, is vital. These terms govern the responsibilities and cost obligations involved in the shipping process.

• Understand your shipping Incoterms: Incoterms are internationally recognized rules which define the responsibilities of sellers and buyers. Knowing these terms can help ensure a smooth shipping process.
• Establish your shipping Incoterms: Once you’ve understood the terms, decide which Incoterms will apply to your shipments. This will help set clear expectations and prevent potential misunderstandings during the shipping process.

Understanding and setting clear shipping incoterms terms ensure a smoother importing process from China.

Tracking Your Cargo and Preparing for Arrival

Shipping goods internationally can take time. For example, goods shipped from China can take around 14 days to reach the West Coast of the United States or 30 days to reach the East Coast. Therefore, it’s important to track your cargo and stay updated on its progress.

Once your goods have arrived, make arrangements for your customs broker to clear them through customs. It’s the importer’s responsibility to ensure that the goods comply with all the relevant rules and regulations.

Obtaining Your Shipment

Once your goods have been cleared through customs, they’re ready to be collected. If you’ve chosen a door-to-door service, you can simply wait for your shipment to arrive at your designated address.

After receiving your goods, it’s a good idea to inspect them to ensure their quality, packaging, and labeling meet your expectations. If there are any issues, contact your supplier immediately to resolve them.

Understanding Customs Clearance When Importing from China

After you’ve identified what you’re importing from China and chosen the right manufacturers or purchasing agents, the next essential step is to grasp the customs clearance process. This aspect often confuses many traders.

Here’s a practical example of how customs calculate VAT and tax for your imports:

• Value of goods: $30,000 (FOB value)
• Value of freight: $1,000
• Total Value of the shipment: $30,000 + $1,000 = $31,000
• Duty Value (CIF): 5% of $31,000 = $1,550
• VAT and TAX Value (CIFD): 10% of ($31,000 + $1,550) = $3,255
• Total landed cost of the shipment: FOB Value + Freight + Duty + VAT = $30,000 + $1,000 + $1,550 + $3,255 = $35,805

By comprehending these cost calculations, you can more effectively plan your import budget and ensure a seamless import process from China. Understanding these nuances is key to navigating the complexities of international trade.

Conclusion

In conclusion, importing goods from China involves several steps, from product selection and supplier sourcing to shipping and sales. By understanding these steps and partnering with reliable suppliers and service providers, you can successfully import goods from China and build a profitable business. Remember, the key to successful importing lies in thorough research, careful planning, and building strong relationships with your suppliers and service providers.

FAQS ABOUT IMPORTING FROM CHINA

How to Ship Goods from China to Your Country

When considering shipping options from China, you have several methods at your disposal:

• Sea Freight: This can be done via Full Container Load (FCL), where you use an entire shipping container, or Less than Container Load (LCL), which involves sharing container space with other shipments.
• Air Freight: Suitable for faster delivery of goods.
• Rail Freight: An efficient option for land-connected destinations.
• Express Shipping: Ideal for urgent shipments.
• DDP Shipping: Delivered Duty Paid shipping means all duties and taxes are paid at the point of departure.

Is Importing from China Profitable?

Importing from China can significantly boost your profitability, much like it does for major global brands such as Apple. Here’s how you can tap into this opportunity:

1. Identify Profitable Products: Research and determine which products are in high demand in your market.
2. Market Analysis: Before diving into trading, ensure you have a solid understanding of what to sell. Consider consulting with industry experts.
3. Partner with Chinese Factories: Once you’ve identified your products, reach out to Chinese manufacturers for quotations.
4. Choose a Reliable Freight Forwarder: A competent freight forwarder in China can simplify the entire process, from sourcing to shipping, and manage complex customs procedures.

Yes, importing from China is profitable if you strategically select products with high sales potential in your market.

What Are the Goods Most Commonly Imported from China?

China is a global export leader, shipping an impressive array of products worldwide. In the past year alone, China exported goods worth over $2.499 trillion. The United States and Hong Kong are among the top importers of Chinese goods, with the U.S. importing over 60.2% of its goods from China. Here’s a rundown of the top products that are commonly imported from China:

• Machinery and Computers: Essential for various industries.
• Lighting, Bedding, and Furniture: Widely used in homes and offices.
• Plastics and Plastic Articles: Used in numerous applications.
• Vehicles: Including both commercial and personal vehicles.
• Toys and Games: A rapidly growing segment.
• Clothing and Accessories: Fashion items are hugely popular.
• Articles of Steel and Iron: Important for construction and manufacturing.
• Optical and Medical Apparatus: Critical for healthcare and technology sectors.

Toys and games, along with plastic, iron, and steel articles, have shown significant growth in exports, indicating a strong market demand.

By understanding these import essentials, you can better navigate the complexities of international trade with China.

Why import from China?

China’s position as a global manufacturing leader is well recognized. The country offers a vast array of tangible and innovative products with high-profit margins for businesses looking to import. The process is streamlined thanks to a robust network of global freight forwarders operating from China’s major ports. Additionally, acquiring samples is straightforward—you don’t need to travel to China as samples can be delivered directly to your doorstep, making the initial product selection process much easier.

How can you find reputable suppliers in China?

Finding quality suppliers is crucial when importing from China. To ensure you connect with reliable suppliers, consider utilizing well-known platforms like AliExpress, Alibaba, Global Sources, and attending major trade shows such as the Canton Fair. These platforms and events are reputable and help businesses connect with suppliers known for their quality service. Referrals from other businesses can also be a valuable resource in your supplier search.

What are the preferred payment methods for Chinese suppliers?

For transactions with Chinese suppliers, wire transfers are commonly preferred, especially for larger orders. Some sellers might accept PayPal for smaller transactions, but it’s typically not used for significant purchases. It’s essential to discuss and agree on the most suitable payment method with your supplier to ensure smooth financial transactions.

How can you ensure the quality of products imported from China?

To guarantee the quality of the products you import, clear communication with your supplier about your quality standards is vital. Consider inspecting the shipments at various production stages. Employing a third-party inspection service in China to check the quality of goods before they are shipped can also be an effective strategy to ensure that the products meet your requirements.

Is it possible to request a sample from a manufacturer?

Absolutely! Requesting samples is a standard practice. We facilitate the shipping of samples from factories you’re interested in partnering with. We offer express delivery for these samples, which typically arrive within a week, allowing you to assess the quality swiftly and make informed decisions.

Who covers the shipping costs?

Shipping costs are determined by the agreed incoterms between you and the manufacturer. These terms define who is responsible for various aspects of the shipping process, including costs. It is crucial to negotiate these terms with your manufacturer to ensure clarity and to optimize the terms of your business transaction. At Super International Shipping, we offer a range of shipping options including sea, rail, and air freight, along with expedited shipping services worldwide, collaborating with reliable partners to ensure efficient delivery.