How to Import From China With the Lowest Costs

Many businesses import from China as they have seen the success in doing so especially since the cost of importing is low. Moreover, Chinese made products such as electronics, clothing and home furnishings are well received globally.

 The steps below will show any importer how to make sure that a complex process can be simplified as much as possible so as to get the best financial benefits.


- Importation Rights – Prior to being able to purchase and import into the USA or any country an individual or company will need to qualify to purchase commercial goods for purposes of resale.

 - Products for Importation – The key element for a business to make money is to make sure they are purchasing the right product for purposes of resale. It is important to obtain product literature, samples and other pertinent information that will assist in buying and importing products that will make your company profitable. Tarrifs and duty charged will be added to your product when it is being imported, therefore it is wise to find out all the details on each product prior to placing a large order.

What is an HS Code?

An HS code is short for Harmonized System; an international system that is standard and which consists of numbers to classify products that are being traded. This system was implemented in 1988 and maintained by an inter-governmental organization known as the World Customs Organization which is based out of Belgium in Brussels. There are more than 200 members who have signed-on to the WCO.

 

Type of Products To Import

The selection of the product must be something that is unique and that can be sold at a relatively high price in high quantities with a low shipping cost by the importer. Before deciding on the actual product and ordering it, the company must find out if that product is subject to importation restrictions and prohibitions, what are the tarrifs, types of permits needed and are there any type of regulations that need to be pursued. 

If there are any safety regulations that are violated it may cost the company importing the goods a superior sum of money to pay for the penalties and fines that they will be charged. In extreme conditions the goods can be confiscated, destroyed or detained at the border if they do not quality as an import item into that particular country.

 

Landed Price

 

There is a ten digit classification number for all goods which the importer must know about. Also there is a Certificate of Origin which is used in determining the duty fee that needs to be paid on that particular item. The landed cost is figured out prior to placing the actual order.


Another name for the landed price is FOB (Freight on Board) however it's determined by knowing ahead of time:

• The pricing from the supplier of the good

• The shipping charges for the product to be shipped

• The custom charges and transportation fee from the border to the warehouse

 

A supplier in China could be:

- A vendor

- An exporter

- A shipper

Once you have determined who your supplier will be the next thing will be to find out about the shipping terms including obtaining a Proforma Invoice which will include the following:

 

1) A HS number

2) A detailed description of the product

3) The value of the item

4) The weight of the item

5) The dimensions of the product

6) Your terms of purchase 



Good luck importing your goods or new trade from China with the lowest costs!