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Top 10 Tips When Importing From China

1. Pay close attention to business nature of your potential supplier. You may want to make clear whether they are actual manufacturers or third party suppliers or exporters in China. Dealing with manufacturers and exporters have respective advantages and disadvantages in terms of international trade. Manufacturers in general can have faster responses to your requests for product designs, product development and production arrangements. You may also be able to get more competitive so called factory direct pricing. However, the third part suppliers and professional exporters typically have much broader channels and connections in various industries so they may better satisfy your broader needs for diversified products. In addition,  professional exporters in China may be able to save you some hassles as they tend to have much more experiences than manufacturers in dealing with potential issues related to the international trade, among which regulation compliance, quality inspections and logistic coordination are just few example. In general, working with any "fourth-party" suppliers is not desirable so not recommended.
2. Establishing close but healthy personal relationship with key staff, preferably the management of your potential supplier is very important in the process of doing business in China. As the matter of fact, the word "Guanxi", meaning "relationship" in translation, is a very famous and popular term in China's business arena. Please also keep in mind that saving other's face is a very important gesture in Chinese culture.
3. You must have a good estimate of the landing cost before placing your order with a supplier in China. The landing cost is the sum of  FOB cost of goods, transportation costs quoted by your freight forwarder including the ocean freight, land freight and local freight as well as port/warehouse charges,  import duties if any, and any fees imposed by logistic service providers such as inspection charges, agent fees etc. There may be some hidden costs in the chain. We would advise you to consult with a professional import management company to find out what hidden costs could potentially incur in the importing process of your specific products. The simplest way to avoid significant cost surprises is to make a small test order.
4. Pay attention to import duties. Import duty assessments are based on HS code of the goods you are importing,  the country of origin, which is China in this case, and destination. If your Chinese suppliers have some export experience, they shall have the knowledge of HS code for your product. However, you still should do your homework by checking product descriptions of the HS code corresponding to the product you are importing. In some case, product definitions are somehow vague. A wrong HS code in the bill of lading may delay custom clearance of your shipment.
5. In term of payment terms, a letter of credit is commonly used and also suggested to use in trade with the suppliers in China, especially when doing business for the first time. Consult with your bank to obtain detail formality and cost.
6. There are two types of exporting companies in China. One is actual exporter that directly handles goods and merchandise for exporting. The other is called "export agent" that is hired by Chinese manufacturers to process exportation documents. The export agents sometimes may also provide certain logistic services to the manufacturers.
7. Failure to fulfill product compliances can be very costly. It may significantly delay custom clearing process and force you to pay extremely high and unexpected customs taxes such as anti-dumping duties. Delays in custom will  subsequently result in a large amount of storage expenses at a railway station or container yard. Therefore, it is critical to make sure all products you import from China comply with all government regulations of the destination country.
8. Visiting trade shows and international business fairs is a great way to meet potential suppliers face-to-face. You can find the lists of upcoming trade fairs in many China sourcing websites. Most of  trade fairs featuring Chinese manufacturers and suppliers are hosted in large cities in Asia, such as Hong Kong, India, Dubai and Shanghai.
9. If the goods you are going to import from China must be packed in wooden cases, pallets or crates for safe transportation and easy loading unloading, standard fumigation is required before entering the United States. All wooden packaging for export must meet the nimp15 treated wood specifications. Such compliance must be certified in official export documentations including "bill of lading". Discuss with you freight broker for details.
10. Find a experienced and professional Freight Forwarder to manage your requirements such as Pinnacle.