Doing Business in China

how to import products from china

Step 1Start importing goods from China by finding the best distributor; dealing directly with a factory is incredibly difficult even for Chinese speakers. A broker or agent will call around for the best possible price. Based upon the size of the order, brokers and manufacturer's agents can get a decent discount on the price.

Step 2Try online marketplaces such as China's giant Alibaba.com. Alibaba is a giant collection of small to large businesses offering every product imaginable. Many of these "businesses" are resellers. They act as brokers with the manufacturers and distributors and will undercut anyone to get a deal. Alibaba is the best place to find what's for sale in China.

Step 3Deal directly with a reputable agent. Shipping through Chinese customs requires a skilled professional shipping agent. The agent must be licensed with the Chinese government in order to ship overseas. All goods must have several official documents accompanying them through the customs clearance process.

Step 4Learn the American regulations for importation. Textiles are a very difficult item to import from China due to the overproduction in China and the U.S. government's attempts to protect the American textile industry. The Chinese government has classified painted silk scarves as works of art to allow for greater export into America.

how to import products from china Step 5Import a small amount of goods for personal use and pay a minimal amount of customs duty. Don't try to import large shipments on a regular basis and claim them as gifts to avoid paying duties. The amount of import duty is paid at time of delivery, or arranged for at time of shipment if shipping with an expedited express shipping agent such as UPS.

1Find 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.

2Establish 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.3Narrow 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.4Understand 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.5Understand 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.6As 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.7Select 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 AsiaCalculator8Place 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.9Appoint 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.10Track 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.11Receive the products and keep the records. Now you can go to your next step to sell your products and make profit.12Do 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.

how to import products from china