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  1. #1
    terryxu's Avatar
    terryxu is offline Senior Member
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    How to Import from China

    1 Find the products you're interested in. There are many sources to find your products. The internet is the easiest one to start with. There are many web listing services, including here, you can register your username, post the products of your interest, and you will receive tons of products supply information and perhaps a price list.

    2 Establish a relationship with potential suppliers. Select a few potential suppliers to communicate with. When contacting suppliers, provide information about your company. The good suppliers already have more business than they can handle - you want to market yourself so that they want to do business with you. When qualifying suppliers, you can ask them how long they've been in business, which trade shows they attend, how long they've been attending these trade shows and which companies they manufacture for. Check and confirm everything that you can.

    3 Narrow down to the supplier that you really want to work with. Discuss the price and trade relationship. Obtain product samples and review them (and their packaging, instructions, and any other collateral) for quality - you may have to pay a nominal fee. Discuss shipping and payment terms. Gather all necessary information to prepare for placing a trial order. When placing the purchase order, include as many details as you can think of.

    4 Understand trade terms and use them. Before placing any order, you need to understand and confirm with your suppliers about shipment terms. Most popular are "fob" and "cif", as well as payment terms. These are closely related to your landing cost calculation and risk assessment. You can consult an import management company and a freight forwarder for detail break-down on the costs and risks. You can also use an import management company to negotiate the trade terms.

    5 Understand payment terms. Somewhat common is to pay 30% at time of order, and the remaining 70% when the product ships. The down payment gives the manufacturer/supplier funds necessary to begin production. These terms are negotiable.

    6 As the Importer of record, you (not the supplier) are legally responsible for making sure that goods brought into the country meet all national regulatory requirements. Goods that don't meet requirements can be stopped at the border or can result in future legal suits. Don't just take a supplier's word that requirements are being met. Do your homework on compliance issues and make sure you know requirements are being met. You need to understand the relevant import compliance regulations beforehand. Besides US Customs and Border Protection, other government authorities like USDA, FDA, DOT, and ATF also regulate the importation. Pay particular attention when you import textile products from china. Go to the websites of these agencies to understand, register or download the forms. Compliance issues can be very complicated for some products. It is highly recommended to consult a good customs house broker before placing any order.

    7 Select a forwarder and customs house broker. Go to your local international trade organization/association and customs office to find the list. Visit them, and select the one you like. For the first time importer, use more individualized services, because you need more attention than you would expect. You may ask your local customs bureau for help on assessing custom duties amount for your products, or use online services such as AsiaCalculator

    8 Place a trial order with a written purchase order if everything goes well. In the purchase order, besides typing out a detailed description of the products, product requirements, packaging requirements, etc., and trade terms, list all needed shipping documents.

    9 Appoint an inspection company to check your goods on site in the factory, and give you a detailed report. It is very helpful to provide the inspection company details about what to check. Without such details, the inspection company may think products are okay even though you won't. You may also consider having inspections done of components that are going into assembly early in the process. This can help avoid last minute quality problems. This is usually done a few days before the expected shipment, so you can address any issues that would be raised. This will allow you to avoid receiving defective or non-conforming goods.

    10 Track the transportation and customs clearance. Your forwarder and customs broker should take care of your transportation and customs clearance. However, you also need to track the process and assistance, such as providing additional products information and endorsing bill of landing. You need to issue a power of attorney to your broker and purchase customs bond for your importation.

    11 Receive the products and keep the records. Now you can go to your next step to sell your products and make profit.

    12 Do not order counterfeit or branded products, unless the supplier can prove they are an authorized reseller. You can contact the brand owner to confirm the supplier is an authorized reseller
    a cantonese in Guangzhou, South China

  2. #2
    terryxu's Avatar
    terryxu is offline Senior Member
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    Tips

    Pay attention to the kind of business of your supplier; are they manufacturers, or 3rd party suppliers? Compare the advantage and disadvantage. Manufacturers may have a faster response in the process of product development, while 3rd-party suppliers have broader channels that can satisfy your other needs in the future. Working with 4th-party suppliers is not recommended.

    Establishing healthy personal relationship with the key employees of your supplier is very important when doing business with Chinese people. Learn the term guanxi (gwan-shee), which loosely means relationship, and keep in mind that saving face is very important for Chinese people.

    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.

    A letter of credit is commonly used in trade with China. 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.

    If solid wood packaging material is used, talk to your broker. Sometimes pallet packing is necessary to reduce the transportation cost during the process of loading and unloading. Talk to your forwarder for details. All wooden packaging for export must follow the nimp15 treated wood specifications. If your supplier is using wooden packaging, make sure he delivers a nimp15 certificate with other export documentation.
    a cantonese in Guangzhou, South China

  3. #3
    fishingeye is offline Member
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    I am from China? I am also can supply Sourcing and Inspecting Service.

  4. #4
    terryxu's Avatar
    terryxu is offline Senior Member
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    Yes, i'm in GuangZhou.
    a cantonese in Guangzhou, South China

  5. #5
    myfayt is offline YE Veteran
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    Buying from China is slowly destroying the US economy because all the US manufacturers are going out of business due to competition. Plus all the US money is being sent to another country and we are running out of resources to make more. Therefor soon there will be no money left at all. Just something to think about.

  6. #6
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    China is the current world's factory whether we like it or not..
    They can produce fast, cheap & in mass quantities..
    & in order to stay competitive, this trend will move on..
    Wait till China moves up its quanlity control, then it will really be interesting..

    That's how the Japanese car industries kill the US car industries a few decades ago..

    We shall see how US reacts this time..

  7. #7
    myfayt is offline YE Veteran
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    Quote Originally Posted by inle View Post
    China is the current world's factory whether we like it or not..
    They can produce fast, cheap & in mass quantities..
    & in order to stay competitive, this trend will move on..
    Wait till China moves up its quanlity control, then it will really be interesting..

    That's how the Japanese car industries kill the US car industries a few decades ago..

    We shall see how US reacts this time..
    Yes and it's because of that fast, cheap and mass quantities that is ruining the US. It wouldn't be bad if some stuff was purchased from them, but every day more and more, probably up to 40% of all items are now shipped from there. The economy here is in really really bad shape we're in a depression era because there is no money.

  8. #8
    inle's Avatar
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    Cool

    Quote Originally Posted by myfayt View Post
    Yes and it's because of that fast, cheap and mass quantities that is ruining the US. It wouldn't be bad if some stuff was purchased from them, but every day more and more, probably up to 40% of all items are now shipped from there. The economy here is in really really bad shape we're in a depression era because there is no money.
    Either we work with them or work against them..

    I think China is not fully responsible for US current economical downturn..
    Likewise, China products & China Chinese are coming into my country..

  9. #9
    myfayt is offline YE Veteran
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    Quote Originally Posted by inle View Post
    Either we work with them or work against them..

    I think China is not fully responsible for US current economical downturn..
    Likewise, China products & China Chinese are coming into my country..
    I am just suggest not working with them so much. Some what is ok, but when the day comes that every single item is from them, then yes it will be both our fault and their fault.

    They aren't fully responsible no, but more and more everyday, everyone is outsourcing to them, and each time it happens, another US business is gone.

  10. #10
    inle's Avatar
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    That's business competition ya..
    Only in National Scale this time..

    If US can add values or benefits to the traders & their businesses, surely there will be some competitive edge to reconsider China..

    Instead of focusing on the possibilities to "boycott" China, why not think of ways to leveage & better the side of US..
    We can't control China..
    We can only control ourselves.

    However the difference between an ally & a competitior is just a thin line..

  11. #11
    terryxu's Avatar
    terryxu is offline Senior Member
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    USA own Technology, China just own labour force.
    USA export technology product, and China just export labour force.

    And how do you think?
    a cantonese in Guangzhou, South China

  12. #12
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    We have food and eating is always more important than toy soldiers.

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