Importing From China

China has become a globally recognized source for many products with qualities for many businesses. Products produced by China such as electronics, shoes, clothes, furniture, home appliances, handbags, bicycles, automobile parts, Kitchen accessories, garments machinery, agricultural machinery, and many more products are globally recognized.

Importing (Definition of Import and Balance of Trade on Wikipedia) from China to your own country is a difficult job to do, especially for new comers. Many people are finding it complicated to bring foreign produced goods in their own countries.

The process of importing can be extremely costly, and confusing. Expected gains can often be destroyed unexpected delays, fluctuating delivery costs, and regulatory fees. However, there is free trade agreement between countries which make importing easier for most of the countries. But if you prepare yourself spending sometimes for learning “Importing From China” to start a Business”, that will be helpful for a jackpot starting.

” Importing From China ”  is
a step by step guidelines for the new comers
who want to start their importing businesses.

Note that the information provided below is for learning purposes only. The best practice is always checking with country’s custom authority, and consulting with an expert who has prior experience. This document is made for the newbies to give an idea on how to conduct an importation from China.

It is your investment, and you are the only person to take all of your achievements or failures.

Importing From China

Step 01: Start Small

Importing is an expensive business, and you have to pay different types of fees along with your product costs. Maybe you are confident that all of your goods will be sold out within no time, but still its better to comment with a small investment, and test the business before jumping in.

Step 02: Find a Reseller

Have your business plan in set before the product arrives in your country? If you plan on using a reseller, find few beforehand and make an agreement if possible. If you are going to sell the product yourself, make a plan to do that beforehand.

Step 03: Identify the Import Rights You Have in Your Own Country

When you buy products for you or your family’s personal uses, it’s very easy to bring it home or import. You may use FEDEX or DHL for shipment purposes. They will handle everything to deliver the product at your door. But when it’s about commercial goods, it’s more complicated. You need to know if you are allowed to import goods to your country or for that specific good or goods. To import commercial goods into your country, you need to have permission from your customs.

Step 04: You Need to Identify the Goods that You Want to Import

A business makes money by selling its product or service. It all depends on the demand of the product. If the product has huge demand in the market, it will be sold within expected time. But what if there is no demand for that product? Here comes the time to make an important decision regarding choosing product that you want to import. Choosing a wrong product means it will destroy your money and time, and so the business. If you want to be a successful importer then you have to choose or select the right product that you want to import.

You need to find out the information about the product as much as possible. Find out product information, potential demand, usefulness, and descriptive literature etc.

Find out the tariff classification of the product you want to import. Be sure about all other duties you need to be concerned in future.

Suggestion for newbies: For Importing From China

  • Select a product which has bigger potential demand
  • Try to find out an important and unique one, but it (for unique one) might be a risky one because there is no market of that product yet
  • Select one that you have a passion on it
  • Select one which needs low shipment cost

Step 05: Make Sure that the Goods You Want to Import in Your Country Have Permission to be Imported

There are some goods you cannot import to your country because there are trade restrictions that is imposed by your own government (there are issues on importing specific goods because of economic reasons, I’ll explain these facts in other post). Different countries have different types of restrictions. Also, ensure that the product you want to import needs any special permission or not, of course from the regulatory body of your country.

It is your (the importer’s) responsibility to ensure that the goods you are importing comply with all the rules and regulations. Importing goods that are not safe, that do not meet health code requirements, or that violate prohibition can end up costing you large amount of money in penalties and fines.

Step 06: Classify the Goods, and Calculate Landed Cost

You have to pay shipping costs, customs duty, and fees to those helping with the importation process. If you are unable to pay a fee the importation process will be halted by the respective authority.

Determine the tariff classification for each of your product you want to import. This tariff and the country from where you are importing will be used to determine the importing duty for your product. Now calculate the landed cost before placing an order. You should consider these three points below that are known as FOB (Free On Board).

  • Know the price of the product
  • Know the shipping cost of the product
  • Know the customs clearance charge, duties & taxes, transporting charge to your warehouse

Step 07: Select Supplier Who You Want to Buy from and, Place an Order

China is a big industry for exporting goods. There are good businesses that will supply quality product, and there are businesses that supply less quality products as well. Find a reputed supplier, or dealer who you can trust and will not supply quality less products. A good one also help you process your shipments and other importing process easier.

Place you order with the supplier, vendor, or exporter of China. Now identify the shipping terms which will be used.

When you are done with the selection of supplier, now ask for a “Proforma Invoice” to that supplier for your perspective purchases, and also, Request for the product description, and unit price of the product.

Step 08: Arrange The Cargo Transportation

There are different types of costs included in shipping goods such as packaging, container fees, broker fees, and terminal fees. These all types of costs should be taken into account to have a clear view of shipment costs.

When you are done with the freight quotes, you now need to send the supplier contract details to the forwarder or shipment company. Forwarders will then take the goods from there and ship those products.

Note that

  • Delay may occur in the shipment process, 1-2 days are pretty much usual; &
  • Must select a reputed freight forwarder partner for importing from China

Step 09: Get Tracking of Your Shipment

International shipment takes time days to weeks to reach the destination. You can get updates about your shipments from your freight agents time to time.

Step 10: Obtain Your Shipment

When the goods arrived, arrange for your custom’s broker to clear them through customs. If everything goes fine, it’s your legal right to get the shipment delivered.

Starting is the hard part of “Importing From China”. When you have processed your first import, you will find the latter ones easier every time, but you should never let down their guard. Once you have found reliable and trustworthy suppliers, you have done most of the parts.


Importing From China to start Business

Importing From China

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Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.