Doing Business in China

There are great opportuinities to doing business in China,Considering import products from China,you should learn some essential steps to import products from China successfully.

First step to import products from China successfully doing business in China.Identifying your correct suppliers.There are many resources to help you find suppliers,magazines,news papers,internet,trade shows,and so on.

Many online directory such as alibaba.com,they provide information about thousands of verified China suppliers and hundreds of thousands of products from these suppliers. When using online directories, check what steps the directory owner has taken to ensure suppliers are real. On Global Sources, suppliers listed as verified suppliers have been visited at least three times, so you can be comfortable they are real companies, with real people and real offices.

Trade shows provide another opportunity to meet suppliers face to face while looking at and touching their products; The China Sourcing Fairs, held in Hong Kong every April and October, include an Electronics show with over 2,200 booths of suppliers, Gifts and Home show with 3,800 booths of suppliers, as well as Fashion Accessories and an Underwear & Swimwear show. And traveling around Hong Kong is easy; the city is modern and English is spoken very widely.

Second step to import products from China successfully doing business in China.Selecting correct suppliers.When contacting the supplier, start by explaining your business and then request samples of the products you're interested in. You'll likely have to pay for shipping and the product, typically via a wire transfer. In reviewing the samples, don't forget to review the packaging and instructions in addition to the product itself. And remember, as the importer you are responsible for ensuring the product you are importing meets all relevant regulations. Learn what these are, in part by asking suppliers that manufacture these products whether they've previously exported to the U.S. and what certifications are required for that market. You can also go to your local big box retailer and see what certifications are on similar products. Finally, communicate frequently with the supplier about all details of the transaction – not just the product, but also lead times and manufacturing completion dates. If you're new to importing, think of your first order as a small initial order that helps you learn how to import from China, rather than an order that will make a big profit. After you've learned how to import from China, start placing bigger orders that will generate more profit.

Third step to import products from China successfully doing business in China.Paying Suppliers.While everything is negotiable, common payment terms are 30% at time of order and 70% when goods are shipped. The 30% payment at time of placing the order gives the manufacturer the money he needs to purchase the raw materials necessary for your order. Some buyers have negotiated other terms, like 30% at time of placing the order, 55% at time the goods ship, and 15% when the goods are received. The payment before shipping mitigates risk that the buyer won't pay, but then puts financial risk on you as the buyer. Understand and mitigate this risk through communications with the supplier (does he seem professional) and by starting with a small order. Typical payment method is via wire transfer. Shop around – international wire transfer fees vary quite a bit from bank to bank.

When you write your purchase order or contract, make sure you have clear options including outs and specific penalties if problems (such as delays) arise.

Four step to import products from China successfully doing business in China.Quality Control
.Having selected a supplier, placed an order, and made an initial payment, you now have to decide what you're going to do to manage quality control. Quality control generally begins before manufacturing starts, so after having seen the sample ask the supplier what steps he takes to ensure quality control. This can includes both the raw materials he's using in the product, and also any continuous improvement to the manufacturing process. Once your order is ready, you have three choices for managing the quality of products.

(a) rely on the supplier's quality control,
(b) have someone in your company do it,
(c) hire a third party to do it.

Five step to import products from China successfully doing business in China.Shipping and Logistics.You have two main choices for having your products shipped – air shipping and ocean shipping.

Air shipping makes sense if you need product fast, if product is small volume/high value, or if your order is relatively small (less than 2 cubic meters). DHL, TNT, UPS and FEDEX all provide this service.

Ocean shipping is your other option. You'll want to find a third party logistics service provider (3PL), with customs broker capabilities (most have this), that has experience with the origin port and destination you're working with. Shipping across the ocean can take several weeks depending on which port you're coming into; add customs clearance, inland distribution to your warehouse and you can easily be looking at over 30 days just for shipping. A good logistics service provider will be able to give you estimates of end to end shipping times, the cost, and manage the entire process for you.

As the importer, you are responsible for import duties. Contact your local customs agency for details about duties for various product categories.