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How To Import From China To USA : Ultimate Guide 2020

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How To Import From China To USA : Ultimate Guide 2020

 

Are you planning on launching your own business venture?

Or better yet, are you concerned about where you would get quality goods from at affordable prices?

Well, you will be getting all the answers by the end of this article.

Many businesses based in USA import goods from China and have been doing so for years. There are several reasons why China is considered as the one-stop destination for manufacturing quality items.

Your chances of generating a considerable profit rely on the money you spend on importing items.

In this article, we will help you understand why importing from China to USA is feasible for you, what products you could and should get from there and how does the entire process work. 

How To Import From China To USA

1.Why should you import from China?

Products “Made in China” have surely amassed a widespread recognition throughout the world. From shoes and clothes to furniture items and electronic gadgets and everything in between, you can import anything from China. 

The reason why many businesspeople prefer importing from China is exactly what you would expect it to be. Products manufactured in China are sold throughout the world at optimal prices. 

Since the prices are affordable, you might expect the quality to be average at best, right?

Well, this isn’t the case at all! The quality of Chinese products is pretty decent and recommended by users across the world. 

Although importing from China can be beneficial for a business, the process is quite complicated.

However, you can easily get familiar with the procedure by understanding the associated technicalities. 

To help you understand the basic and advanced requirements for importing from China, we have put together a guide. Following this guide will make you fully understand what goes behind the scenes while importing stuff from China to USA. 

Suggested reading:How To Import From China : The Complete Guide

Best Products to Import from China

2.Preparation Work For Importing From China?

Before importing any Chinese products, it’s important that you have the right answers for the following questions. 

A.Is a license mandatory for importing from china to usa

Yes and no. Let us explain…

While certain federal agencies require you to have an import license, U.S Customs and Border Protection lets you import stuff without demanding a permit or license. 

To confirm your compliance with the set requirements such as FDA, FTC, Agriculture etc., you should own an import license or permit while importing certain items.

These items include copyrighted and trademarked material, prescription medications as well as food and dairy products.

B.Should a Customs Bond be purchased? 

Before we tell you whether a customs bond is required for importing from China to the usa, let’s introduce the term.

A customs bond basically helps the importer provide an assurance to U.S customs and border protection (CBP). The assurance is that the importer will carry out their obligations concerned with custom duties, penalties etc.

You should also know that the company handing out the customs bond should also be involved in the mix. 

If you employ a customs broker to assist you with getting clearance for the imported products via CBP, a customs bond isn’t required.

You can simply compensate the broker for their service and utilize their bond. If you import FDA-regulated goods, you must purchase a customs bond.

Additionally, you are required to become a registered importer on FDA’s website. Even for clearing the products by yourself, you should purchase a customs bond from an authentic surety agency.

C.What is an Importer Number? How is it determined? 

You will be asked to provide an importer number on the entry form during the entry stage.

If you run an IRS-registered business, then your importer number can be the IRS business registration number.

If your company isn’t registered with the IRS, then your social security number will suffice.

The SSN can also be used if you don’t have a running business. 

Or, you can simply fill the CBP Form 5106, submit it to the entry branch of your nearest CBP port of entry and ask for a CBP allotted number.

To stay away from the hassle, you can recruit a customs broker to assist you with such technicalities. 

3. How to Find best products to Import from china To USA

Once you have taken care of all the prerequisites, you are already to import from China to usa. But before that, you need to know what kinds of products you can and should import. 

A.Some general recommendations  

      • Make sure that the products you are importing are not large and heavy. The reason is that there are a lot of uncertainties and risks involved in such cases. Moreover, the shipping cost will end up being quite heavy on your pockets. So, go with the items that are small in size and light in weight. 
      • Order products that can easily be manufactured and boast considerably high margins of errors. The latter is quite helpful in cases where the goods’ quality isn’t top-notch.
      • You should import items that are in the $10-200 range. Speaking from a seller’s perspective, shipping items that exceed the $200 price tag is quite difficult. If you are new to the field of importing, then dealing in high-end products will probably expose your mistakes.  
      • Always remember that you can run a successful business only if your venture can thrive in this competitive world. So, an important tip is to avoid competing with businesses that deal in products you commonly buy and use. Find yourself a safe zone and grow from there. 
      • Consistency is the key. Don’t opt for products that will only be in demand during a particular season. Expand your horizons and deal in products that are in trend throughout the year. 

B.Products that you should not be importing from China 

      • Branded items: The main goal behind importing stuff from China is to get quality products at affordable prices. When it comes to branded goods, you are better off buying local products. The reason behind it is that branded items in China are comparatively expensive. 
      • Goods with high tariff rate: Before you get swayed away with the affordable prices of Chinese products, check the import duty. You are required to pay an extra 25% tariff for importing products falling in certain categories such as electronics, vehicles etc. So, you are recommended to import products with reasonable tariff rates. 
      • Food and supplements: These items should ideally be bought locally. As per the FDA guidelines, you will need an import license to import the concerned products. Apart from that, the whole procedure to import food and supplements from China to the USA will take its toll on you. So, keep things simple and purchase edibles locally. 
      • Products rich in demand but not in value: Although you can earn a small profit by selling stuff such as papers, clips etc., you are recommended not to limit your potential. The market is constantly evolving and you need to deal in products that carry great value. 

Suggested reading:The Profitable Products To Import From China

Source Product From China

C.Import products that are legally allowed in the USA

Of course, you don’t want to run into any trouble while importing goods from China.

Before you finalize the list of products to be imported, conduct a thorough research about the items’ scope in the USA.

Once it is confirmed that the products on your list are legally allowed locally, you can proceed. 

4. How to Choose a Trusted and Reliable Suppliers in China? 

If you wish to stay safe from scam and fraud, you should only buy stuff from Chinese trusted suppliers. Here’s how you can find them:

A.Visit trade shows in the US and/or wholesale markets in China

      • With every passing year, the number of Chinese suppliers participating in US-hosted exhibitions is increasing. GSMA, CES, Toy Fair New York etc. are among the widely known trade shows held in America. Suppliers from all around the world (including China) promote their products in these shows. Make sure that you attend these exhibitions and get in touch with the participating Chinese Suppliers to discuss your venture. 
      • You are also encouraged to attend Canton Fair as well as visit Yiwu wholesale markets native to China. Speaking about Canton Fair, it is unarguably China’s largest trade fair organized every April and October. You can come across numerous suppliers belonging to different industries. 

Suggested reading:China Trade Shows: Ultimate Guide 2020

​How China Trade Shows work

B.Turn to the Trusted Chinese wholesale websites

      • Alibaba.com: It is, without a doubt, one of the most successful Chinese wholesale websites. It boasts a massive inventory of products and has been operational for many years now. On Alibaba.com, you can easily find the right suppliers to import from china. However, you need to keep an eye out for credible sellers since Alibaba (despite its longevity) isn’t free of scammers. 
      • Made-in-China.com: It is your go-to store for purchasing products falling under the machinery and vehicle categories. Most suppliers on the concerned platform have set a minimum order quantity requirement of $5,000.
      • Globalsources.com: A trusted wholesale website that shares resemblance with Made-in-China.com on many fronts. If you are planning to buy electronics, then Globalsources.com is a must-visit site for you! 
      • DHgate.com: This wholesale website doesn’t force you to buy a certain quantity of products in order to finalize your order. You can order even a single unit for each item. Owners of small businesses are highly recommended to find suppliers on this platform. 
      • Aliexpress.com: As with DHgate.com, Aliexpress.com doesn’t have an MOQ requirement in effect. Moreover, you can choose from millions of high-end and cost-effective products on this website. 

Suggested reading:Best 10 China Wholesale Websites – Buy Wholesale From China

manufacture, wholesaler, and retailer.

C.Place an order 

Once you are done searching for suppliers and comparing quotes, it’s time to dive straight into action. You can start by placing a sample order initially.

Also, it would be better if you can request the supplier to provide you with a Proforma or Commercial Invoice. Ensure to request for a packing list that features product cost, description and packing information.  

D.3 things to take care of 

      • 1. Don’t go after a product with the lowest price: While it’s a good practice to search for products that are affordable, quality should be your foremost priority. If you are provided with a quote that is abnormally less than the other ones you have been given, stop! Seriously, such products are likely to be of poor quality and buying them can end up costing you money that you should have saved in the first place.  
      • 2. Properly explain the supplier what you are looking for: Make sure that you have properly conveyed your requirements to the supplier. Lack of clarity can cause manufacturers to use their own creativity while developing your product, which might not be a good thing. Ensure your involvement in the manufacturing process. Also, make sure that the supplier has verified every single specification of your product. 
      • 3. Find a supplier you can trust: If you are doubtful about your supplier’s quality of service, then you shouldn’t buy goods from them. Ensure that whoever you deal with in the world of business is trustworthy. 

5.How to Ship goods from China to USA

Once you have finalized the products that you need to import from china, it’s time to choose a shipping service. Here are some effective shipping methods and terms that you should be aware of: 

A.Courier Shipping from china to usa

Highly effective for goods weighing between 0.5 and 500 kgs. By using this mode of shipping, you can expect to receive your products within a week. 

      • 1. Benefits of Courier Shipping: The courier company has its own customs broker who will get the clearance done. So, you don’t have to be concerned about clearing the imported goods. Additionally, a rapid delivery is ensured in most cases. Lastly, you can also keep track of your orders as they get shipped to you.  
      • 2. Choose from the most trusted International Express Companies: Although there is no shortage of international express companies, you deserve the best. The most renowned companies for the concerned task are UPS, FedEx and DHL. DHL is pretty affordable but it often gets late in bringing goods to the US. This is why UPS and FedEx are your go-to companies for shipping products from China to the USA in a timely fashion. 
      • 3. Working with International Express Companies: If you have made up your mind to get your products shipped by any of the above-mentioned express companies, you need to take care of some things. For starters, you have to pay the delivery cost to your supplier in China. The supplier will be responsible for arranging the shipment. Once you successfully receive the ordered items, simply sign on the package. 

Courier Shipping

B.Freight Shipping from china to usa

Freight Shipping is pretty common as well. Whether you choose sea freight or air freight, you will have to confirm if you plan on hiring a US-based freight forwarder or simply request your supplier in China to do the honors. 

You can easily search for a local freight forwarder on internet. The freight forwarder will take care of every major task. However, you will have to ask your suppliers about FOB costs.

In case you decide to leave the task of arranging shipment to your Chinese supplier, ask them about the CIF rates. These rates will include insurance, freight costs etc.

Moreover, you will still need to hire a customs broker to help you get clearance for the products during the entry process.

      • 1. Air Freight: This mode is really beneficial and affordable if your order weighs over a thousand pounds. For finding out the exact rates, you are recommended to reach out to your freight forwarder or supplier in China. 
      • 2. Sea Freight: This mode should be utilized when the total volume of your products exceed 2 cubic meters. Sea Freight’s rates are considerably less than those of international express companies and air freight. However, there’s a catch your products can take up to 40 days to reach the US port. 

Suggested reading:International Package Shipping:The Ultimate Guide

Freight Forwarder

C.International Postal Service

International Postal Service has its pros and cons. Although it is highly affordable, it doesn’t provide you with a tracking number for your products.

Of course, you can get a tracking number or purchase insurance for your goods, but you will have to pay extra for these perks.

Moreover, you will have to confirm beforehand if the products being imported are legally allowed to be mailed via U.S Postal Service.

Anything priced above $2,500 cannot be transferred via mail since a formal entry has to be made for it. 

D.Shipment Terms

      • Incoterms: Set of guidelines accepted throughout the world. The incoterms are used in the global transportation of products. The guidelines divide the responsibilities between the buyer and supplier (responsible for arranging the shipping). 
      • FOB (Free on Board): The term is accompanied by the port of shipment’s name e.g. New York. FOB is only acceptable in water transportation. As per this term, the supplier holds the responsibility of goods until they get loaded on the ship. After that, the responsibility is completely handed over to the buyer. 
      • EXW (Ex Works): As per this term, the seller is only responsible for readying the products so they can be picked up by the buyer’s carrier. The buyer holds full responsibility of their products even before receiving them.
      • CFR (Cost and Freight): This term requires the supplier to pay for shipping to the designated destination. As for the buyer, they are responsible for loading the products from ship/freight on to the truck and everything that follows. 
      •  CIF (Cost, Insurance and Freight): It is almost the same as CFR with an added requirement. The requirement being referred here is that the supplier has to purchase insurance for protection against damage and loss claims.
      • AWB (Air Waybill): This non-negotiable bill is applicable in air transport and is basically a physical proof of the contract of carriage. 
      • FCL and LCL (Full Container Load and Less than Container Loads): As the names suggest, the former term alludes to a shipment that takes up complete space of a container and thereby, leaves no capacity for goods from other shippers. The latter (LCL) is used while discussing about a shipment that is shipped with other shippers’ products and only occupies a set portion of the container. 
      • POD and POL: POD or “Point of Discharge” refers to the port where the shipped items are unloaded from the ship. POL or “Port of Loading”, on the other hand, is the port at which the ship gets loaded with the products.

Suggested reading:What are trade terms?60 International Trade Terms Defined

trade terms

E.Should you manage the shipping by yourself or get an shipping agent for this job? 

If you are new to the import business, you would likely be recommended to get an ship agent for managing shipping.

Although enlisting the help of an agent will make your task easier, it can cost you some extra bucks. The following options will help you discover some cost and time-effective ways of managing the shipping. 

      • 1. Gain full control: This strategy will require you to directly reserve a space with airlines or shipping lines. Not only that but you will also have to manage Customs Declarations on both ends (China and USA). In short, you will have to take full responsibility of your order. This approach, although effective, can eat up a lot of your time. This option is best suited for well-established businesses. 
      • 2. Collaborate with a local freight forwarder: As the title indicates, this approach requires you to enlist the help of an appropriate freight forwarder in America. The only drawback of this approach is that many forwarders don’t have their offices in China. So, they hire local agents and you have to pay the agent’s fee in addition to the forwarder’s commission. 
      • 3. Recruit a China-based freight forwarder: This approach has gained quite the prominence. The forwarders can easily keep you updated about your order, since they can interact with the supplier in-person. In case any issues arise, the forwarder can easily help address and attempt to resolve them. This option is also pretty cost-effective. 
      • 4. Get a forwarder on each side: A pretty effective option to say the least. By recruiting two freight forwarders, one in the US and the other in China, you can get the best of both worlds. You gain extra control over the shipping management and let the experienced forwarders handle the technicalities.

6. What are the product compliance requirements in the USA? 

As an importer, it is important for you to ensure your products are safe and do not create injury or release hazardous substances in the market. The U.S federal agencies specify the safety regulations and standards pertaining to each product category. 

If you are an Amazon seller, besides the national standards, you also need to know which products require pre-approval before you can sell them on Amazon. For products such as hoverboard products, laser pointers, and specific products in the software industry, will require prior approval from Amazon. You can also find a list of Amazon restricted products and FBA product restrictions on Amazon website. 

To know which product certifications are needed for customs clearance, you can double check with your customs broker or freight forwarder to prepare for all the certificates. 

All the products imported to the USA must have the country of origin label-“Made in China”; however the certification required for different products vary. For your ease, we list some of the most popular requirements by product category. 

Besides the above products, the FDA regulates a range of products to ensure the products available in the US market are safe. To know if your products are under FDA regulations, you can check here for more information. 

For apparel and textile products, there are several federal agencies administering relevant regulations as shown below. For more information, you can check the apparel compliance requirements here

To know more about the electrical compliance requirements, you can click  here. 

Shortcode:

Once you are notified about your ordered products’ arrival, you need to submit the required documents to the CBP to get clearance for your items.

You will have 15 days to do that before the goods get sent to a warehouse. Retrieving the items from warehouse will cost you an additional storage fees.

You will lose ownership of the products if you don’t claim them within 6 months of their arrival. 

The entire clearance process can confuse you, especially if you are just stepping into the world of import.

So, you are recommended to work with a customs broker or forwarder. The mentioned personnel can assist you with the process of import clearance and document presentation.

Here are a few important factors that you should be aware of: 

HS coding and Declared value

Declared value refers to the shipment value stated by the shipper. This value helps in the calculation of total freight charges in addition to reducing the carrier’s liability for delay, loss or other inconveniences. In many cases, it is usually considered as the shipment’s cost price. 

As for an HS code, it stands for Harmonized Commodity Description and Coding System. Coined by World Customs Organization, the said system is a generally accepted standard worldwide for defining a commodity type.

HS code is used for the declaration of every commodity that enters or crosses various international borders, to customs. 

Around 5,000 commodity groups are a part of the extended system. Moreover, every single group is represented by a six-digit code. The system also serves as a basis for over 200 countries’ customs tariffs. 

What is the US import tariff rate?

The tariff rates vary for different products. For starters, tariff rate for clothing items, mainly those belonging to the cotton category, is a solid 16%.

For LED lights, a considerable dip can be observed i.e. 3.9%. Tariff on furniture items is 1% and as for solar products, an anti-dumping duty is imposed on them. 

Finding out the US tariff

You can check the US tariff rates by heading over to the US import tariff website (https://hts.usitc.gov/).  Then, search for the desired product by entering its name or the first 4 (or 6) digits of the HS code.

For Chinese products, simply view the value under the “General” column in Tariff 1.  

Harmonized Tariff Schedule (2020 Revision 18)

Precautions for importing Chinese products

  1. The customs will demand a wooden packaging to be done for heavy products, in addition to asking you for a fumigation certificate. You must explicitly declare “NON-WOOD PACKING” on every document if there isn’t any wooden packaging. Moreover, the recommended weight capacity for the container is 38,000 pounds. In case the weight exceeds 43,000 pounds, a special triangle or four-corner car frames will be roped in. 
  2. A “MADE IN CHINA” label should be imposed on the product. If it isn’t there, Customs will demand a label to be sold. 
  3. Food and supplements have to be evaluated by FDA in addition to passing through the Customs. Expect an FDA service fees to be added by the Customs agencies as well. 

A.Mandatory documents for customs clearance  

      • Bill of Lading (B/L): The purpose of this document is to confirm that the exporter shall receive payment and the importer shall receive their ordered items. This bill is provided by a carrier or their hired agent and serves as an acknowledgement of the cargo receipt for shipment. 
      • Commercial Invoice: It will feature the declared value that will help CBP in collecting customs duty. Product Description, Quantity, Goods’ value in Chinese Yuan as well as US dollars and other essential details can be found on the said invoice. 
      • Packing List: Used in the shipment’s verification by the customs, this helpful list is filled with important details. These details are centered on the goods’ packing information. 
      • Arrival Notice: Once the products successfully enter America, the freight carrier sends out the arrival notice to the importer/buyer that their products have arrived.  

Import clearance and customs duty

B.The varying customs duties

If the products are priced below $800, customs duty will not be applicable on them. For products priced between $800 and $2,500, a customs duty will be applicable. It can be calculated with the help of the following formula: 

Customs Duty = Customs Value x Duty Rate

The customs value can be retrieved from the commercial invoice. Duty rate, on the other hand, will be provided by the HS code and country of origin.  

Shipments exceeding the $2,500 mark must file for a customs bond in order to get customs clearance. 

C.How the shipping mode impacts the way you pay the import duty?

  1. In case the products are shipped to you via mail, you can either pay the mail carrier or pay the required processing and duty fees at a nearby post office. No duty fee is imposed on a small order. 
  2. If an international express ships your goods, it can either make an advance payment of the duty and bill you later or collect payment on delivery. 
  3. There are 2 ways of clearing the duty dues if your ordered items are arriving on a freight. You can either pay the duty by yourself at the port directly to CBP. Or, you can enlist the help of a customs broker to get the clearance. After that, you have to fully compensate them for their assistance. 

8. Tracking your order and be ready to receive it

It’s common knowledge that products won’t be shipped from China to the US overnight. It usually takes the shipment 14 days to arrive at the West Coast of America and up to 30 days to reach the East Coast (from China). 

While your goods are being shipped to you, you can check the required documents. This can help save your time during the customs clearance process. 

9. Acquire your shipment

Upon the shipment’s arrival, you are required to make arrangements for your customs broker to clear the goods. Provided that everything goes smoothly, you are encouraged to receive your goods.

If you have opted for the door to door delivery service, you just have to anticipate the products’ arrival at your doorstep! 

Final Thoughts on importing from china

We hope that our guide helped you in understanding the complete process of importing merchandise from China to the US. Granted, there are a lot of technicalities involved, but you can easily master the concepts of importing over time.

Moreover, the availability of help at every point (brokers, agents, forwarders etc.) is a plus! We hope that you achieve immense success in your planned venture and find the right suppliers!

Leave us your inqury

FOUNDER’S NOTE

LeelineSourcing will always help you buy cheap and good quality goods from China.

sharline leelinesourcing founder

 

Here are some Tips How To Minimize Risks When Import Products From China

China is the ideal destination if you want to import a variety of goods that will help your business grow, and you can get these goods at a cheap price, and of good quality. Importing goods from China is a huge go-to option when you are planning to go international with your business.

Although importing goods from China is a popular option, and very profitable, there are certain risks that go with it.

Lots of importers are still skeptical of importing goods from China due to the fact that the country’s trade practices are not as regulated as that of more developed countries.

As a business person, you are familiar with the word “you have to risk it to get the biscuit.” Importing  goods from China is one risk you have to take when considering sourcing your goods internationally.

Lots of things can go wrong when you import from China, but if you can lessen the risk you will make a lot of profit, and you are on course to building a successful business.

When importing goods from China, the risk a new importer think they might encounter is the supplier taking their money and never shipping their product.

The possibility of something like that happening is almost nonexistent. But the risks an importer is likely to encounter are:

How To Minimize Risks When Import Products From China

1.The possibility of getting low-quality products

When you import from China there are lots of risks you might encounter, one of them is getting products of substandard quality.

If you are a regular importer from China, there is a possibility that you will one day get products of low PR substandard quality.

If the shipment has just some defected products, then the situation is salvageable, and you can still sell the rest of the products and make a profit.

But if most of the shipment are defected or substandard, then you have no option than to send back the substandard products to the manufacturers, that’s why you need to have laid down terms in your contract with either your manufacturer or your sourcing agent, just to help you mitigate these type of losses.

How To Minimize Risks When Import Products From China

2. Products getting lost or even damaged in transit

Whenever you are importing your goods internationally, whether from China or somewhere else, there is always that possibility of your product getting damaged or even lost in transit, whether the goods are getting shipped, by air or you’re even using postal services.

The best way to reduce your losses is by insuring those products. Getting insurance for your imported products will help you cover losses that may arise.

I have first-hand experience with goods getting damaged in transit as I have helped a friend receive goods from customs, and after taking those products home, it was discovered that those products which were electronic products have been damaged.

Some heavier goods were placed on top of fragile electronic equipment, and my friend mitigated those losses since he already insured those products beforehand.

How To Minimize Risks When Import Products From China

3. Not making a profit from imported goods due to a competitive market

Not all goods imported from China is a profitable success story. There are times you import products from China hoping to sell and make more profit, but at the end of the day because of a highly competitive market you don’t make the profit you expect, and sometimes you can even incur a loss.

Let’s take for example you import desktop computers for $150 each, hoping to sell for $250. But after you have listed the product for months without making a single sale, you decide to reduce your price to $200, then to $180, then $170, then you finally make a sale, you will realize you have incurred a loss of $10, as you imported the desktop for $30 per piece.

The best way to mitigate this type of risk is the incremental ordering of these products.

4. The products you imported may cause personal harm or property damage

One very risky situation you will face when importing goods from China is that manufacturer producing something with materials that are hazardous to human health, or products that can cause property damages.

You the importer have a responsibility in terms of harm or damages your products may cause. That’s why it is important to have insurance on your products.

5. The goods that get delivered to you may not be what you ordered

When you import goods from China, there is a high probability that the goods you ordered for are not what the manufacturers ship to you.

This type of error happens from the manufacturer’s warehouse, the manager in charge of stocks might mix up the goods to the be shipped, and you will end up getting the wrong product.

The only option is sending the product back, and request the manufacturer sends what you ordered for. And the shipment cost should be catered by the manufacturers. These conditions should be stated in your terms of contract with your sourcing company, trading company or the manufacturer.

6. Your products can be copied

When you send over your design to your manufacturer, and maybe you have a patent or trademark for that design, a manufacturer in China can still copy that design and use it to manufacture for another customer, and there will be little you can do about it.

7. Not building a relationship with your manufacturer

The Chinese business culture follows a certain tradition, that you need to learn as an importer, and learning the Chinese business culture can take years. The Chinese value “guanxi” which means “relationship”.

Creating the right type of relationship with your manufacturer will help you lessen your Chinese importation risks. So you need to develop a very great working relationship with your manufacturer or supplier.

How to reduce risks when importing goods from China

How To Minimize Risks When Import Products From China

 

A business environment is a risky place, so is the importation of your goods from China. That is more reason why you should keep some measures in place that will help you reduce the risk you might encounter when importing goods from China. So how can you reduce your importation risks? They are

1. Order for product samples to check for quality

One wise way to spend some little extra cash in the importation process is to first order for product samples from the chosen manufacturers to check for the product quality of the final product.

If you’re satisfied with the product sample then you can tell them to go ahead with the production, but if you’re not convinced with the sample product quality, then you can halt the production, cancel the production, or tell them what they can do to improve on the product quality.

2. Find a reliable purchasing agent

Getting a reliable purchasing agent will help you reduce risks and save time when sourcing your products from China.

A reliable sourcing company will help you verify manufacturer’s quality, help with the logistics, verify product quality, and help you with the importation process.

This will help you reduce the risk you will encounter when importing goods from China.

3. Find a qualified supplier

This is a very important step in the risk reduction process. Before ordering your products from a particular supplier, it is advisable to do a background check on that supplier to be sure they can deliver top quality.

If you are outsourcing the importation process to a sourcing company, the sourcing company is responsible for verifying if the supplier is qualified and trustworthy.

4. Choose your preferred means of transportation

When importing goods from China, you have the option of importing by air or sea. You can ship your products of the quantity is very large, and it is not needed in your home country urgently.

Transporting by air is important when the products are urgently needed in your home country, and it is not too much in quantity.

5. Visit and inspect factories

Before you order your products from a chosen supplier, it is important you visit and inspect their factories before they can begin production.

The reasons for this is to allow you meet the company management to see if they are competent enough to handle your order, the check the factory’s level of technical competence, to see who else has placed order with that same factory and check reviews, to see if the factory complies with labor laws and regulations etc.

If they meet your requirements, then you can finally give the go-ahead for production.

6. Understand your product market

Before importing a particular product, take your time to understand the market. Take your time to understand the demand for that particular product in your local market, how the pricing works, then take your time to learn about the manufacturers of the product.

Make sure you are versed in every single detail of that product before you start importing, it will save you a lot of stress and help you reduce any risk you might encounter.

7. Sign a clear contract

To me, this is the most important way you can mitigate risk when importing fromChina. You must sign a contract clearly stating the terms of payment and delivery.

And if any party breach these terms then payment won’t be made, and you can present these terms to appropriate authorities when the supplier breaks the terms stated in the contract.

How To Minimize Risks When Import Products From China

A reliable sourcing company/agent we recommended Leelinesourcing

Leelinesourcing

Leeline sourcing company is involved in different sourcing business that will help your company’s growth, and make your international business better.

No matter how big or small your orders are, we will help you source quality and affordable products, and we will ship them directly to you.

• Product Sourcing: With over 10 years experience in this field, our team will keep your mind at peace, and you will be sure that the products are supplied through a responsible supply chain.

• Amazon FBA sourcing service: We offer you Amazon seller services, from product procurement, to brand labeling, quality inspection, packaging services, product photographing and also shipping of products to FBA warehouses. Just tell us what you need, and we will help ship your products to your warehouse at lightning speed.

• Business and sourcing ideas: If you walk into our office, we will share business and sourcing ideas with you, even if you are importing yourself, our ideas will help you avoid mistakes that will be costly to your business. Our advice will surely help your business turn out better.

Leave us your inqury

FOUNDER’S NOTE

LeelineSourcing will always help you buy cheap and good quality goods from China.

sharline leelinesourcing founder


About the author

Sharline is the founder of LeelineSourcing.com. With 10 years of experience sourcing in China, She loves to share knowledge and ideas in sourcing bussiness.She writes only the truths which others are normally not willing to tell. This makes her posts distinguishable from other import & export articles.
3 Responses
  1. Anil

    Hi
    Good evening
    I would like to import Galvanized coils from China through agent from UAE who are having office at China as well.

    What are the precaution I have to take for it?

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