How To Import Goods From China-The Step by Step Guide
China exported US$2.499 trillion worth of goods worldwide in 2019, which was 13% of global exports.
Importing from China is a lucrative undertaking for any businessman.
Thousands of businesses earn a sustainable profit by importing products from China.
But if you are new to this game, you may be wondering, “how to import goods from China?”, “How do I find profitable products to import from China?”
Importing from China can be an overwhelming task if you are new in this business.
The importing process from China is sometimes highly complex, confusing, and costly.
You can lose your expected profits by prolonged transit times, inconsistent delivery costs, regulatory fees, and some unexpected delays.
That’s why we created the complete guide on ‘how to import goods from china.
After finishing this article, you will know every step you should take before importing from China and find your way to import from China and make a profit.
Table of Content
1.Why Import From China? How much money can you make importing from China?
2.Prepare proper documentation to import from China.
3. Select the right product for importing from China.
3.1 How to find profitable products to import from china and Sell?
3.2 Identifying Good and Bad Products to Import From China
4. Ensure that your country permits the product before importing products from China.
5. Find Good Product Sourcing And Right Suppliers From China.
5.1 Create your product Specs
5.2 The Most Popular Places To Find Great Product Suppliers In China.
5.3 Import your product directly from Chinese suppliers
5.4 Use a Sourcing Company to Import products from China.
5.5 Ask for a quote from Chinese suppliers.
5.6 List potential suppliers.
5.7 How to Verify your Chinese Suppliers?
5.8 List top 3 Suppliers and Visit.
5.9 Trading Company or Factory Which one is better for you?
5.10 Request a Sample from each supplier.
5.11 How to Negotiate for Low Price and Low MOQs?
6. Payment Terms and Methods. How to ensure you are getting top-class products?
7. How to Import From China?
7.1 Importing From China Using a Professional Sourcing Agency
7.2 Import directly from the suppliers
7.3 Use a Buying Agent.
8. Calculate the landed cost to work out the profit.
9. Important Things to do before placing an order
9.1 Ask for the best sample.
9.2 Prepare a document on your demand and product quality and submit the Chinese Suppliers.
9.3 Finish the agreement and Submit PO (Purchase Order)
10.1 Supplier Contracts for importing from china
10.2 What kind of contract will you need?
11. Quality Control in China
11.1 Level of quality control you need
11.2 Quality control tips for you.
12. Shipping and Logistics
12.1 Three Shipment methods to import product from China
12.1.1 Air Courier
12..1.2 Air Freight
12.1.3 Sea Freight
12.2 Shipment Terms
12.3 LCL shipment
12.4 FCL Shipment
13.1 China Custom Duties
13.2 Bill of Lading
13.3 Packing List
13.4 Commercial Invoice
1. Why Import Products From China?
If you are planning on international trading, China is the best place to start. Why? Let’s find out the reasons.
After paying the factory cost, and import duties, you can save from 30% to 150% on things imported from china than manufacturing in most parts of the world.
China’s main exports provide a big margin of profit to the traders.
Therefore, importing from China is economically ideal.
Chinese factories are typically more cooperative as they deliver products all over the world.
They don’t demand a considerable amount of minimum order for mass production.
Moreover, things imported from China are produced by industry-standard experts and capable of producing in larger volumes than what you get locally.
China’s main exports win the race for its competitive advantages.
China’s labor costs are not that low, like low or middle-income countries.
But China has other advantages such as infrastructure, supply chain of raw materials, and most importantly, skilled workers, which are those kinds of things you can not replace.
Another exciting factor is that there is no need to visit China to import goods from China.
But if you do, that can much benefit you.
Things imported from China always have a competitive advantage over others.
2. Prepare Proper Documentation To Import From China.
Before you start importing goods from China, you should prepare some necessary documentation.
These documents will help you with the future declaration.
We have created a list of documentation you should collect from the port.
- Customs entry document for your product.
- A customs declaration
- Commercial invoice of your product.
- A Packing List.
- An export license.
What Else Would You Need To Import From China?
If you are planning on importing goods from China, you should get an inventory.
Typically an inventory costs 1 to 3 thousand US dollars.
Here is the list of what you should have before importing products from China:
- A customs broker
- A Logistics company
- A Freight Forwarder
- An Inspection agency in China
We want to mention that you do not need to learn the Chinese language to import from China.
Almost every Chinese export company has its website in the English language and sales catalogs.
They also have some staff who are proficient in the English language.
So, for importing goods from China, language won’t be an issue for you.
3. Select The Right Product For Importing From China.
Good product selection is essential before importing goods from China.
Before you start finding profitable products to import from China, you have to choose the right profitable product.
Of course, the budget should be your primary concern, but you should also consider the product’s current market conditions.
If you have the capital with proper planning and research, you can be a successful importer from China.
3.1 How To Find Profitable Products To Import From China And Sell?
You can follow the following principles to find profitable products to import from China.
Find Something That Will Create Or Add Value To Your Brand.
Remember, the first thing you need is to develop your brand.
People do not just go to the market and buy products comparing the price.
The first thing they do is to find the brand behind each product and then compare.
Do Not Run After Hyped Products
Hyped products never sustain in the market.
Therefore, with a hyped product, you will never be able to add value to your brand image.
Though many importers’ imported products from China are hyped products and most of them suffer in the long run.
Another vital piece of information about the hyped products is that they have quality issues in most cases.
As those products are new on the market, the build quality is never confirmed.
These types of products can damage your brand image.
Sell Products You Love
Before importing goods from China, ask yourself, “Do I like this product?”
It is not mandatory you love all the products you bring from China but DO NOT import products you hate from China.
Business needs passion also.
Don’t Go For Cheap Products.
In China, there are many types of suppliers.
Maybe one will tell you that you will earn 10x profit from his product.
Please stay away from him.
Typically you can make 20-30% profit from a business.
If anybody offers you many more than that, do not fall for that as it can destroy your brand.
Bulky Products Are Expensive
We don’t discourage you from importing bulk products from China,as that can be profitable too.
But we want to remind you that you must have a warehouse for bulk-size products, and that will increase the cost per unit of your product.
3.2 Identifying Good and Bad Products to Import From China.
China is the global factory. So, there are some excellent products for small importers and some harmful products.
So, before asking, “how to import from China,” you should ask yourself, “how to identify good and bad products from China.”
This is not an easy task, but you can identify good and bad products if you know the following:
- China has various philosophies about intellectual property. And they are very good at imitating. As a result, you will find many counterfeit products in the Chinese market. Beware of those products.
- Don’t import complicated products. If you observe the products exported from China, you will find many multifunctional complex products. Most of them are not of high-quality. So, please keep it simple and import simple goods from China.
4. Ensure That Your Country Permits The Product Before Importing Products From China.
Every country has its unique import policy.
So, before you import goods from China, you should know which products your country forbids products exported from China or any other country.
If you don’t know that and import any prohibited product in your country, the authority will cease your product.
Moreover, for importing restricted products, you will be fined.
Most countries have no issue with top imports from China but to be on the safer side you should double-check before ordering a product.
5. Find Good Product Sourcing And Right Suppliers From China.
Before sourcing and finding the answer to “how to import products from China”, you have to select the best product that suits your business.
You must have a road map for design customizations, and additional features, but you don’t have to sort all of these before you get your first order.
We also suggest you don’t go for many products, straight for the top imports from China, just stick to one or two products.
As your business grows, you will be able to add more products to your business.
5.1 Create Your Product Specs
Before you buy products from China, you should sort out the product specification you are going to import from China.
Many new and amateur importers jump head-first into sourcing before defining their product specifications which is the biggest mistake for items imported from China.
If you ask ‘how to import goods from China,’ our first answer will be, ‘crate a product spec first and then think of importing products from China.
Don’t follow the top imports from China without your own specs. Every market is different.
What should your product’s spec include?
- Product description
- Building materials for the product
- Product dimensions
- Color of the product
- Testing demand before mass production from the market
- Label requirements and specifications
- Packaging specifications
Why Should You Define Your Product Specs?
If you are not sure about your product spec, manufacturing process, packaging, and labeling requirements, you can be in danger with those items imported from China.
Remember, compliance requirements for selling into your native country and the market’s quality demands depend on those product specifications.
So, if you don’t have a precise spec, you won’t be able to import profitable products from China.
Moreover, you should bear in mind whenever you will verify suppliers and analyze the quotes; you should compare them with the spec in your hand and compare like-to-like spec for each quote.
Attention: Small differences like dimension, design, color, weight, etc., can make a massive difference in the market.
5.2 The Most Popular Places To Find Great Product Suppliers In China.
Finding suppliers in China is not a challenging task.
But you have to be patient and find the best suppliers among thousands of them.
There are two methods to find suppliers from China.
- Import goods from China directly from Chinese suppliers
- Use a sourcing company to find a supplier.
5.3 Import Your Product Directly From Chinese Suppliers.
Here is the list where you can find China’s major exporters.
- Global Sources
From Alibaba, you will find many factories or at least highly specialized trading companies.
Most of those companies demand comparatively high MOQ or minimum order quantities.
On the other hand, from Aliexpress, you are going to import from a reseller.
From Aliexpress, you can purchase low quantities, even one or two products, but the price would be higher, as you guessed.
Video: How to find best suppliers from Alibaba
Another excellent method for finding some of China’s lier is by visiting trade shows.
The best suppliers often do not advertise.
Those who you can’t find on Alibaba are available at trade shows.
Most top exporters attend trade shows or trade fairs.
The Canton Fair is China’s biggest trade show, and you can find many suppliers here.
Moreover, you can find industry-specific trade shows as that will help you more to identify industry-specific suppliers. Many top imports from China happen through these websites.
China’s biggest trade show is the Canton Fair
Moreover, if you are looking for cheap products to import from china these sites can help you a lot. Though we do not recommend that.
5.4 Use A Sourcing Company To Import Products From China.
A professional sourcing service is another safe way to import goods from China.
Souring services by far is 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.
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.
The way is effortless. Go to the market where you can find the product specially made for the Chinese domestic market.
You are planning to import from China.
Ask the retailers about the company/factory they bring their product.
Go to that factory and ask them to help you the exporters of the same product.
They will happily give you the information as they are not exporters.
Moreover, you also can gather data on China’s main exports of related products you are sourcing.
Do not just look for cheap products to import from China and find those suppliers as that can seriously damage your business’s reputation.
5.5 Ask For A Quote From Chinese Suppliers.
The following important part is formatting your email and preparing the Request For Quote or RFQ.
This will increase the response rate from companies and simplify the evolution and tracking process of finding the right supplier.
You should demonstrate in your email that you are a professional operator and potential client of the factory.
You should write your email in a clear tone with clear calls to action.
You should write clearly about your product’s outlook, raw materials, components, and testing materials in the email.
Don’t forget to attach your product specification with your email.
5.6 List Potential Suppliers.
You should begin by sourcing 10-15 suitable suppliers from your list.
Then, narrow down your list to the best 4 to 5 of them.
You should pick the suppliers depending on price, product quality, factory size, delivery time, and compliance ability.
It is better to focus on the best 4 to 5 suppliers from your list.
Remember, more than 5 suppliers will make it challenging and expensive to collect samples and to visit the factories.
For a big amount of products, you should look for suppliers that are responsible for China’s main export.
If you are looking for cheap products to import from China you should list more suppliers for finding a better product.
5.7 How To Verify Your Chinese Suppliers?
It would be best if you adequately verified your Chinese suppliers before you import from China.
We have created a set of questions so that you can verify your Chinese suppliers easily.
Question 1 – Can the factory manufacture your product?
Question 2 – Does the factory possess sufficient experience in manufacturing this kind of product area?
Tips: Chinese factories never say “No” to any question.
So, you should ask them to show you their previous experience.
Question 3 – Is the company a trading agency or manufacturer?
Tips: Spotting a trading company is an easy task.
If you see they are selling products of different categories, most likely they are trading companies.
We will discuss the topic later in this article.
Question 4 – How is the communication process?
Tips: If the factory is not good enough or slow in communication, avoid them.
You will be in severe trouble if anything goes during the production.
Question 5 – Where is the factory’s location, and how will that impact the product’s cost?
Tips: You should learn more about Chinese geography and find which type of companies are located where.
Question 6 – Is the factory big enough to deliver your order?
Tips: Do not choose a small factory as the company will probably outsource the product at the time of final production.
Do not select a large company for a small amount of product as they won’t consider you an essential person.
Question 7 – What certification does that company have?
Tips: Without a testing certification, the company won’t be able to test your product.
So, ask them what kind of certification they have to test and deliver your product.
Question 8 – What market does the company sell their product into?
Tips: Companies selling products in the local market or in the middle east or Africa tend to manufacture low-quality products.
Question 9 – Do they have a legitimate license?
Tips: You should not import from China from suppliers that don’t have export licenses.
Question 10 – Is the product price competitive?
Tips: Avoid too high and too low price
Before finding the answer to “how to import from China” you should know how to find the best supplier from China.
5.8 List Top 3 Suppliers And Visit.
The easiest and best way to find a suitable supplier when importing China’s goods is to inspect their factory.
By inspecting the factory, you will be able to see the setup, capacity, workers’ quality, the sample room, and the product quality and control systems.
Moreover, by visiting the factory, you will be able to negotiate the price directly with the management.
If you plan to import products from China, visiting the factory should be on your priority list.
If you can not visit personally, you should arrange an inspection with a third party to inspect the company on your behalf.
5.9 Trading Company Or Factory Which One Is Better For You?
In China, you will find mainly two types of suppliers: factories and trading companies.
You must know factories produce products.
On the other hand, trading companies do not source various kinds of products from different companies.
The positive side of factories is that they will deliver the product at a lower rate.
But you have to order a larger quantity from a factory.
On the other hand, trading companies will demand more than factories, but you will be able to order a lower amount of products.
Typically trading companies or factories declare themselves as they are, but you should ask them before placing an order.
Neither trading companies nor the manufacturer is the best option for you.
It depends on your budget and plans with the product you are importing from China.
Learn more about trading companies and factories
5.10 Request A Sample From Each Supplier.
Once you have selected the product to import, place an order for a sample of that product from your supplier.
We recommend you order 2 samples from two suppliers.
The factory or trading agency will charge you for the product and for the air freight to deliver the product.
Once you’ve received the sample, check the quality, and then you can go to place the main order.
One suggestion, make the first order as low as possible.
You must know the MOQ of the company, don’t order too much than the MOQ.
It is better to gradually increase the order size and your business grows and get customer feedback from your selling area.
At the time of placing your actual order, submit an invoice or purchase order consisting of the followings:
- Order quantity
- Shipping terms, such as FOB, FCA, CFR, etc.
- Date of the order completion.
5.10 How To Negotiate For Low Price And Low MOQ?
The most important thing you must do before negotiating the pricing is to ask for different quotes; two or three suppliers will be wise.
You will get a clear idea of what the actual price of your product is.
In China, price and quality are directly proportional.
So, if you get abnormally low-price, that means the product quality is low.
A low price depends on many factors, but the main factors are:
- Significantly low cost than others.
- Different shipping terms such as FOB, FCA, etc.
- Too much higher MOQs.
Once you are sure about the cost, you can try the negotiation.
The price in China is getting fixed these days, and you won’t find enough room for negotiation.
You can expect 5 to 10% less than the quote at best.
And for the MOQ, if you can negotiate well, you can make them agree to 50% of the MOQ they quoted to you.
6. Payment Terms And Methods And Ensuring The Product Quality
30% advance-70%after production is the most common payment term when you are importing goods from China.
That means you have to pay 30% of the actual price when you place the order and 70% after the completion.
Do not accept an offer asking 100% deposit unless you ordered products worth less than US $2000.
Typically Chinese companies take wire transactions; some may ask for a telegraphic transfer.
You can also pay with PayPal, but if the amount is over US $ 5000, the supplier won’t agree to receive a Paypal transaction.
Almost every Chinese company takes their payment in US dollars.
If you can not pay them in US dollars, you will be subject to currency fluctuations among your country currency, the US dollar.
If you have to transfer currency, we suggest using an exchange service other than banks as they will provide a better rate.
To ensure the product quality of your shipment from China, you should follow the following rules:
- Define your quality product
- Inspect the shipments and make sure they meet your definition of quality products.
- Be very careful about quality fade.
Observe every shipment carefully and tell your supplier if you find any problem with your product.
The product quality does not decrease suddenly.
The quality decreases gradually. So, before getting an awful product, you should watch closely all of your shipments coming from China.
7. How To Import From China?
There are three answers to this question of “how to import from China”.
Using a sourcing company: Skilled and experienced team will handle the shipment by communicating and negotiating with your supplier, check product quality, and monitor each stage of the production.
Importing straight from the supplier: Typically, if you order using Alibaba or any other online platform, they will take care of the shipment.
Using a buying agent: 1 person or a group of people will operate the shipment.
Every method comes with its pros and cons. It depends on the quantity of your product, budget, etc.
7.1 Importing From China Using a Professional Sourcing Agency.
Every sourcing company has a “Professional Team” to assess companies and products.
The Quality Team follows a preset procedure to sign off product samples by reviewing the product itself, building process, manual, and packaging.
The professional product internal quality team also has a quality control team to check the quality control throughout the manufacturing process.
After the inspection, the 100% quality control product is permitted to ship to the importer.
If you are finding the answer, “how to import goods from China,” you should ask a sourcing company as they are the best people to give you the best solution.
7.2 Import Directly From The Suppliers.
Importing goods from China straight from an importer, if everything goes fine, can be a beneficial way of doing business. Using this process is relatively quick and effortless.
Alibaba is the best place to import directly from China, as it delivers a wide range of suppliers in a single place.
The conversations in those B2B websites are really quick, and you can get the quote as fast as in a single day.
However, Alibaba or any other B2B website can be overwhelming sometimes.
You will find thousands of suppliers selling the same products at different prices.
So, how can you choose the best product and the supplier from them?
You have to depend on your luck a great deal to get the best product for your business as well as an excellent, faithful supplier.
Most imported products from China are exported directly from suppliers.
7.3 Use a Buying Agent.
Sometimes, companies importing goods from China search for a buying agent in case they need any assistance with communication or are simply too busy to make the shipment themselves.
Sourcing agents in China can speak in the native language of China with potential suppliers, which ensures easy and smooth communication and, as a result, a diplomatic negotiation.
As the buying house is a local person or team from China, they are very good at communicating with local exporters.
Buying houses are responsible for exporting most imported products from China.
Attention: In theory, a buying house first buys products from the market and then contacts the best product manufacturer.
But in reality, they have connections with some factories and give your order to them based on their personal relationship.
So, before hiring a buying house, you should talk to them briefly and tell them you want the exact product you mentioned in your product specification.
Most imported products from China are of good quality but there are also many bad quality products.
8. Calculate The Landed Cost To Work Out The Profit.
Calculating the landed cost of your product is the most critical thing in the shipment process. DO NOT SKIP THIS.
You should calculate the landed cost depending on your projected order volumes, not the minimum order requirements or MOQ.
You should not make any decision based on the trial order’s landed costs.
If you do there is a high chance that you might dismiss the product that would work if you order a large quantity such as a container.
Remember, the cost per unit of a product varies from a trial order and a larger order as the shipment process can change according to your order.
The shipment method will significantly drop your product’s unit price.
Moreover, You will also get more leverage when negotiating for a bulk quantity.
For calculating your landed cost, you should have the following information:
- A quote from the supplier including incoterms, loading port, product description and pricing, the packaging size, total volume of order (Cubic Meter), the currency of quote, and terms of shipment (FCL, LCL).
- A finished quote from the freight forwarder you hired and customs broker that includes: freight costs from the port it started, local charges in the importer’s country, local VAT TAX, trucking costs.
- Your local currency and exchange rate
If you have all of these, you can add the following costs to determine your landed cost (We are assuming you have the FOB from your supplier):
Product purchasing cost: Including the cost of product+quality control inspection+lab test (if applicable).
Freight Cost: The cost may vary from company to company.
As a freight forwarder in China, Hart Logistics offers the minimum cost.
Local Charges: Port charges, legal papers, customs clearance, transit duties, insurance, warehouse (if applicable), domestic trucking, etc.
Your customs broker or freight forwarder can tell you the total charge.
Duty: If you have the HS code, your freight forwarder will tell you what the charge will be.
Taxes: You have to know the local taxes for the product you are importing from China.
Video: How to calculate the landed cost
You have to add the postage and storage cost with 1-3% additional for defective goods for online selling.
9. Important Things To Do Before Placing An Order for Importing from China.
You should not just take the sample and give the order when importing goods from China.
You have to maintain a procedure to obtain the best product from China.
First, you have to have the golden sample in your hand.
Then you should prepare the terms of agreement and send your purchase order to the company.
When you are satisfied with them, only then will you proceed and place your order.
This process is crucial for your query of “How to import products from China”.
9.1 Ask For The Best Sample.
DO NOT agree to start mass production before developing the sample production and getting the perfect sample in your hand.
Factories will tell you they will improve the product in mass production but DO NOT agree to that.
The perfect sample is called the “golden sample.”
Do not order before getting the golden sample in your hand—order two samples.
Keep one for your testing purpose in the future and send the other to the company for their reference.
If necessary, define the tolerance level of your product.
9.2 Prepare A Document On Your Demand And Product Quality And Submit The Chinese Suppliers.
As we told earlier, Chinese companies never say “No” to any demand.
To overcome this problem for your items imported from China, you have to format your agreement and terms with the supplier.
Attention: A Chinese court won’t hold this agreement, but you can inform your client about your requirement.
You should include the following:
- Unit price
- Size of order
- Payment terms.
- Product specifications and labeling needs.
- Packaging requirements
- Product tolerance limits (if applicable)
- Mass production lead time
- Delayed penalty clause
- Quality criteria
- No unapproved sourcing from outside
- Right to inspect the factory anytime
- For a large amount of product exclusive agreement.
9.3 Finish The Agreement And Submit PO (Purchase Order).
Now it is time to send your Purchase order or PO. Send your PO following the following steps:
- You should send the terms with your PO or purchase order.
- Your purchase order should also contain the following:
- Your business name, logo, and physical address
- Detail company information of the supplier.
- PO number
- PO date
- Ordered product list with detail such as quantity, price, spec, etc.
After sending the PO, the company will send you a pro forma invoice (PI).
You have to verify that both documents match all of your requirements.
You may have heard that in China, contracts got no value, but that is a myth.
China’s legal system has developed quite a bit, and now contracts are very crucial for business.
But, if your lawyer is not an expert in Chinese law, your contract will have no value in the Chinese court and you will be in danger with your items imported from China.
So, take the help of a lawyer who knows Chinese law very well.
10.1 Supplier Contracts For Importing From China.
When you are purchasing from a manufacturer from China, you should talk to the supplier several times about the expected product specification.
If the specifications are not described clearly or left any room for interpretation, the supplier can deliver an entirely different product than your expectation.
Sometimes, similar products have some differences in specification.
So, make sure you clearly send the specification of your product with all the tiny details.
If you don’t put them all in writing, you are at a high risk that the production manager won’t get a detailed description of your items imported from China.
As a result, the production won’t follow your requirement.
You don’t need a100 pages contract, but you should cover all the crucial details of your desired specifications.
Having that on paper, you can claim that you did not get the product you ordered in the future.
As a result, the manufacturer won’t be able to deny your claim as it is in the writing form.
Eventually, the factory owners want to run a repeating business with any customer.
Therefore, the supplier would love to have precise instruction from the customer for the product they have to deliver. And, you will be on the safe side also.
If the contract does not tell every detail of the product specification and quality control, the suppliers can claim that they did not get the instruction right.
In that case, your claim will not stand for legal procedure, and you will end up losing your money.
10.2 What kind of contract will you need?
For most starters, a contract is not that important.
We recommend you invest in product or marketing than a lawyer.
But if you are dealing with a substantial amount of money or have an IP to protect, we suggest making a contract.
Hire a well-aware lawyer of Chinese law because if the lawyer makes any mistake, the case won’t sustain in the Chinese court.
11. Quality Control In China
When you are importing from China, you risk not getting the exact product when you receive your shipment.
So, you have to ensure the product’s quality before the supplier makes the shipment.
Managing product quality is an ongoing process.
Sometimes, even big companies compromise the quality to save some production costs.
Therefore, you must drive a third-party audit team to monitor the product quality.
Put simply, when the supplier knows that you are watching them, they won’t plan to cut the production cost.
Pre-shipment inspection is the most standard way of doing business with Chinese importers.
The inspection team you hired will inspect the shipment and send you our report.
The report will give a “Pass” or “Fail” report examining your load, and after getting the report, you should proceed with your shipment.
11.1 Level Of Quality Control You Need.
The level of quality control largely depends on your product type and market requirement.
Most companies need pre-shipment quality control, but you can opt for other types of quality control in exceptional cases.
There are 3 types of quality control to proceed. They are
Pre-shipment Quality Control: This is performed when 80% of your product is ready to deliver.
Mid-Production Inspection: When the production is going on. Primarily in between 20-80% product production.
Container Loading Check: It is performed when your product is loaded in the container. Remember, a faulty container can ruin all of your products.
11.2 Quality Control Tips For You.
Quality Assurance and Control are not the same things.
Quality Control deals with product defects, deviations, and not maintaining the specifications.
Quality control does not work with product redesign or other fundamental things; it only deals with the specifications you provided with your PO.
We recommend preferring a supplier who will completely cooperate with your audit team for quality control.
12. Shipping And Logistics
How to import products from China?
Well, shipping and logistics is the most stressful task when you are shipping goods from China.
To overcome this challenging process quickly, you can contact us.
Hart Logistics provides excellent shipping and logistics support for those importers import from China.
12.1 Three Shipment Methods To Import Product From China
You can ship from China using three shipping methods. These are:
12.1.1 Air Courier Or Express Courier
Express courier is the easiest method of importing from China.
There are many top-rated Express courier services in China, such as DHL, FedEx, UPS, TNT, etc.
This is a door-to-door service that will pick up the product from the supplier and deliver you to your home address.
Express services also have their own customs brokerage service that means you don’t have to worry about hiring a customs broker.
If your product is under 150Kg, we recommend you use express courier service.
Air couriers take 2-5 days to deliver products to your home.
Hart Logistics also provides air courier service with DHL, and the cost will be reasonably lower.
Know more about shipping from china
12.1.2 Air Freight
If the product weight is more than 150 Kg and under 500 Kg, we recommend Air freight when you are shipping from China.
Usually, air freight takes 2-10 days to deliver your shipment, with 2-5 days for customs clearance.
This is not a door-to-door service, so you have to pick up the shipment yourself from the Airport.
Hart Logistics supplies Airfreight at a comparatively low price.
You can take our air freight service for shipping products from China.
12.1.3 Sea Freight
Sea freight is the cheapest method of shipping your product from China.
It will cost US$3000-$4000/container to ship products from China with sea freight.
If you are importing a large number of products from China, we recommend the sea route as it will decrease the unit cost for your product.
Typically a sea freight takes 10-60 days to deliver the product worldwide.
You will have to receive the shipment from your port and clear all the customs duties to take them to your warehouse.
At A Glance
|Express Courier||Air Freight||Sea Freight|
|150 Kg or Less||250Kg – 500 Kg||More than 500 Kg|
|US $10/Kg||US $5-8/kg||US $3000-$4000/Container|
|2-5 Days(Door to Door)||2-15 Days||10-60 Days|
12.2 Shipment Terms
Shipment terms are another critical for your query of “How to import products from China?”
You must know the shipment terms, how they work, and finalize which terms will be used in your shipment from China.
12.3 LCL Shipment.
LCL means Less than a container load.
If you are importing a small number of products, FCL is the only option we have.
In this process, your product will be delivered to the port, and you will share a container with other traders for the shipment.
After the shipment arrives, your product will be unloaded, and you will be able to receive your shipment.
The bad side of this method is people who will handle your shipment are not aware of your product, and there is a chance that they will damage your product.
So, if you are planning an LCL shipment, tell your supplier to pack the shipment very well for any unlikely damage.
12.4 FCL Shipment
FCL means Full Container Load. When you order a full container load, the container will be sent to the factory, and they will load your product in the container.
Once your items are put into the container, the doors will remain closed with a seal.
The seal will be untouched before it arrives at the destination.
With FCL term risk of damaging the product is very low.
But you have to order a large amount of product to take this service.
- Loading and recording the exact quantity
- Highly skilled laborers will take care of the loading process with utmost care.
- Placing the cartoons with the proper stack. Taking care of those products that are vulnerable to weight and putting them at the top.
After deciding the products and items you are importing from China and finding ideal manufactures and buying agents, it is time to know something about customs clearance.
Many traders get baffled when it comes to customs clearance.
13.1 China Import Duties
Import duty depends on:
- a) Lading Bill of your product
- b) Packing List
- c) Commercial invoice
You will have to show these documents to the customs clearance broker to arrange the product’s delivery.
13.2 Bill of Lading.
BOL or Bill of lading is a document that comes from the main shipping line.
Bill of lading confirms that the consignment actually arrived on the boat.
Typically the captain signs the paper of confirmation that is used as Bill of Lading.
The bill of lading also tells about your shipment from China.
Shipment properties like weight, dimension, export, and import port are all described in the BOL.
13.3 Packing List
The packing list is the list of the products you are shipping from China.
The list includes what the product is. What quantities you brought and how many boxes are there.
Customs has the authority to cross-check the information with the bill of lading and commercial invoice.
If the customs find any misinformation, they will raise a red flag against your product, and you will not get the delivery sooner.
13.4 Commercial Invoice
From a customs point of view, a commercial invoice is very crucial. The VAT and TAX depend on the commercial invoice.
To better demonstrate how the customs calculate the VAT and TAX, we have prepared a demo shipment cost.
Suppose you have imported a product worth $20,000 (FOB value), and you paid $2000 for freight.
Now take as VAT and TAX is 10%, and the duty is 5%. Now see the below calculation.
Value of goods = $20,000 (FOB value)
Value of freight = $2,000
Total Value of the shipment = $20,000+$2,000 = $22,000
Duty Value (CIF) = 22,000X5% = $1,100.
VAT and TAX Value (CIFD) = (CIF + Duty)X10% = ($22,000+$1,100)X10% = $2,310
Total landed cost of the shipment = FOB Value + Freight + Duty + VAT = $22,000+$1,100+$2,310=2,5410.
Importing goods from China can be a profitable trade by all means.
But without proper planning, research, and planning implementation, this can be a disastrous move for your business.
Most importantly, if you do not plan well the shipment process.
We know how vital the shipment is for your business.
Our expert team tackles all the processes and confirms a smooth delivery of your product.
We hope this article on importing from China will help you to prepare yourself for importing from China.
For any assistance with the shipment, Hart Logistics is always with you.
Best of luck with your shipment from China.