NewSmartShip specializes in sourcing various products from China, including shoes, clothing, electronics, furniture, and more, which are widespread globally. They optimize importing processes, especially favoring small and light goods, to reduce costs in importing, storing, and shipping to end customers. We leverage China’s efficient manufacturing capabilities, offering comprehensive freight forwarding services to meet the increasing global demand for importing from China. Whether by air, sea, rail, express, or specialized methods like DDU or DDP, they cater to diverse shipping needs based on goods type, budget, and specific requirements. We also provide affordable cargo insurance to safeguard shipments from potential loss or damage.
Is it profitable to import from China?
Importing products from China can be a lucrative strategy to boost profits, as evidenced by significant companies like Apple and other global brands relying on Chinese factories. To replicate their success, it’s essential first to identify high-demand products suitable for your market. Conduct a thorough market analysis to pinpoint products with strong consumer interest in your country. Seek expert guidance if needed to make informed decisions on what to sell. Once you’ve identified promising products, contact Chinese factories for quotes and formulate a strategic plan. You must select a reliable freight forwarder in China. They will handle the intricate customs procedures involved in international trade, source goods from chosen factories, and ensure safe delivery to your specified address. This partnership significantly reduces logistical challenges and enhances efficiency. Importing goods from China can be highly profitable when you capitalize on products with substantial sales potential in your local market.
Benefits of Importing from China
Importing goods from China offers numerous advantages that contribute to business success:
1. High profit margins
2. Unique and rare goods
3. Control over distribution
4. No special licenses required
5. Affordable specialty products
6. Immediate and long-term profitability
7. Skilled and cost-effective labor
8. Robust supply chain
9. Abundant natural resources
Incoterms
When importing from China, understanding commonly used trade incoterms can help you select the most suitable trade way when placing an order:
1. EXW (Ex Works): Under this agreement, the supplier prepares the goods for pickup, and the buyer assumes responsibility and costs once the goods leave the supplier’s premises. This gives the buyer control over shipping arrangements and costs from China.
2. FOB (Free on Board): FOB specifies who bears liability if goods are damaged during transit. FOB shipping point means the seller is responsible until the goods are shipped, while FOB destination means the seller is liable until the goods reach the buyer. This term is often used in sea freight and non-containerized inland waterway transport.
3. C&F (Cost and Freight): In C&F terms, the seller arranges sea carriage to a specified port but is not obligated to obtain marine insurance for goods in transit, leaving that responsibility to the buyer.
4. CIF (Cost, Insurance, and Freight): CIF requires the seller to handle shipping by sea to the destination port and includes insurance. The seller then transfers documents to the buyer, and the CIF value is used in European nations for duty estimation on imports.
NewSmartShip manages all these trade incoterms when shipping goods from China, ensuring comprehensive handling and clear understanding regardless of the chosen term.
How to buy from China?
Before importing goods from China, your first step should be carefully selecting the products you wish to import. Conduct thorough research, attend relevant trade shows, seek expert advice, and determine what unique value you can offer with your imported goods.
For example, if importing to the US, ensure your products comply with safety standards, carrier restrictions, and customs duties. US customs strictly enforce regulations on banned goods from China. Ensure your products meet labeling requirements and US safety standards. Once these considerations are addressed, you can contact suppliers and initiate the importing process.
Sourcing products: Find a supplier in China
While Alibaba remains a popular choice for sourcing suppliers, numerous alternatives are worth exploring. Many businesses on Alibaba are manufacturers, though some are traders. Alternative sources include attending China Import Export Fairs, utilizing platforms like Made in China and Global Sources, participating in the Canton Fair, and conducting direct searches via Google. Reliable suppliers often maintain active websites where you can review their products and client testimonials for credibility.
Email is the preferred method for communicating with suppliers when importing goods from China. While most suppliers can communicate in English, tools like Google Translate can help with language barriers. Keep your emails concise and focused to ensure clear and efficient communication.
Request for a quote
When communicating with suppliers for importing goods from China, follow these essential steps to ensure clarity and efficiency:
- Minimum Order Quantities (MOQ): Begin by requesting the MOQ from the supplier. Verify if the MOQ aligns with your budget and discuss potential negotiations to adjust minimum requirements.
- Pricing for Samples: Next, ask for pricing details for sample orders. Samples are crucial for assessing product quality, and many suppliers offer discounted rates.
- Product Pricing: Inquire about the cost per unit for the products you intend to import. Ensure you get the exact cost per unit rather than a price range.
- Production Time: Understand the production timeline required by the manufacturer for your batch of goods. Timely production is critical for business planning.
- Payment Terms: Lastly, clarify the payment terms with the supplier. This includes discussing upfront payments, installment options, or other relevant terms affecting cash flow and inventory management for e-commerce startups.
Payment terms you need to know
Here are several preferred methods for making payments to suppliers:
- Wire Transfer: This method sends funds directly to the supplier’s bank account. Paying a 30% deposit upfront before production begins, with the remainder due before final delivery, is advisable.
- Letter of Credit (L/C): L/C is safer than direct wire transfer for larger trade orders. It involves a bank guaranteeing payment to the supplier upon delivery of goods, following specific procedural requirements.
- Western Union: While faster, Western Union is riskier without escrow protection. Use it only for small sample orders and trusted suppliers.
- PayPal offers buyer protection and ease of use but is less prevalent in China due to the complexities of withdrawing funds and high tax rates.
- Secure Payment (Escrow on Alibaba): Escrow is safe for wholesale orders. A third party holds the buyer’s payment until the goods are received, ensuring both parties’ protection.
Import Duty and Taxes from China
You must understand and account for import duties and taxes when importing goods from China. These charges include port fees, import duties, and value-added taxes.
Different countries have procedures for determining and applying import duty rates. For example, uniform import duty rates are used when importing goods from China into a European Union member country. Importers are responsible for customs charges, which vary based on the type of product imported. Products not manufactured within the EU generally incur higher import duty rates, while some, like consumer electronics, may be exempt from import duties. Conversely, shoes attract a specific duty rate, typically around 12 percent.
What is Value Added Tax (VAT)?
Import taxes are obligatory for all imports, including those from China. Different EU member states impose varying Value Added Tax (VAT) rates in addition to customs duties. The EU customs value is determined based on the Cost, Insurance, and Freight (CIF) price of imported goods from China.
Typically, import duties are calculated as a percentage of the goods’ customs value. This percentage varies between countries and is influenced by the product’s classification. In some nations, customs value is based on the free-on-board (FOB) value. Sales tax is also a percentage of the total customs and duty paid. Certain countries have a standard rate for sales tax.
Testing the samples from the seller
When receiving samples shipped via air freight, expect delivery within three to ten business days, depending on your location. Ocean freight shipments usually take 15 to 45 days to arrive. Once you receive the sample, perform a thorough inspection:
1. Quality Check:
Make sure the product meets your expected standards by testing its functionality and performance.
2. Packaging:
Evaluate the quality of the packaging, and if items are packed together, request separate boxes.
3. Instructions:
Check that the shipment includes appropriate instructions. If not, request the supplier to provide or make your instructions to accompany the shipment.
4. Labels:
A clear label indicates the product’s origin (e.g., “Made in China”). If the label is missing, ensure it is added per labeling regulations.
Attention to these details during sample inspection ensures that the product meets quality standards and is ready for market entry when imported from China.
Arrange a third-party inspection.
If you prioritize inspecting orders before shipment, consider hiring a reputable third-party inspection company like PONY, CCIC, Intertek, or SGS to conduct quality checks on your behalf.
1. State Expectations:
When placing an order, clearly communicate your requirements to the supplier before production begins—specifying product expectations and all relevant details in a purchase agreement. This ensures that the third-party inspection company can use this information effectively during their inspections. Include the shipping deadline and outline the consequences for failing to meet requirements to hold the supplier accountable.
2. Conducting Inspections:
Arrange for third-party inspectors to visit the factory and inspect goods at various production stages. For example, if ordering upholsteries, inspections can verify structural integrity and dimensions from the initial manufacturing stages.
3. Addressing Issues with Suppliers:
Promptly communicate all issues identified by the third-party inspector with the supplier. Request corrective actions such as replacing or reworking defective items to meet specifications.
4. Re-inspection for Quality Assurance:
After addressing and rectifying any identified defects, consider re-inspecting the goods to ensure they meet your quality standards. These steps can prevent potential financial losses and uphold your reputation by delivering products that meet customer expectations.
What should you do after receiving the imported goods?
After receiving the goods from the manufacturer, we suggest you check the quality, labels, and whether the products and packaging are intact. And email the supplier to provide feedback on the products received and suggestions for future shipments.
If you are considering importing goods from China, follow this comprehensive step-by-step guide for help.
You can entrust NewSmartShip as your freight forwarder. With ten years of industry experience, we focus on simplifying the entire import process from China for our customers. We ensure safe delivery from the Chinese factory to our warehouse, where we manage your inventory and complete the order promptly. Please get in touch with us today.
Importing from China by air, sea, rail, and express shipping way
Many shipping costs are associated with shipping goods from China to another country, including packaging, container fees, and terminal handling. You can request a freight quote from your freight forwarder to assess your shipping costs.
There are several shipping options for importing goods from China:
1. Sea freight:
Sea freight is cost-effective and essential for global supply chain management. Due to its large storage capacities, it’s ideal for transporting heavy goods and is environmentally friendly.
2. Air freight:
Airfreight offers the quickest shipping method but is more expensive. It involves an airport-to-airport service, requiring you to collect goods after customs clearance at the destination airport.
3. Rail Freight:
Rail freight utilizes trains to transport goods over long distances. It’s suitable for bulk materials and provides a balanced cost-to-speed ratio compared to sea and air freight.
4. Courier Service/Express Shipment:
Courier services like TNT, UPS, FedEx, and DHL provide ‘door-to-door’ service, managing all aspects of shipment, including local pickup, packaging, customs clearance, and tax payment. While quicker, parcels have weight limitations.
Cargo Transportation Insurance
Freight forwarders should ensure that every shipment from China is adequately insured, although insurance coverage can vary depending on the freight service chosen. Insurance policies do not necessarily cover every aspect of shipping, so customers need to verify the specifics of their insurance policy for each shipment.
NewSmartShip Logistics provides freight insurance for selected shipment types, covering damages and breakages. The insurance cost is calculated based on the value of the goods and the freight, typically ranging from 0.1% to 0.3% of the shipment’s declared value, depending on the category of goods.
Tips when importing from China
Shipping goods from China can be complex due to the country’s intricate procedures and significant growth in trade activities. Here are essential tips for importing goods from Chinese factories:
- Obtain quotes from multiple suppliers and select products that meet your satisfaction.
- Conduct quality inspections or request samples to ensure product quality.
- Choose a reliable freight forwarder to handle logistics on your behalf.
- Use appropriate packaging to safeguard your goods during transit.
- Insure your shipments to mitigate risks during transportation.
- Select the right incoterms to manage costs, liabilities, and risks effectively.
- Consolidate shipments to optimize logistics and reduce costs.
- Utilize free warehousing services offered by some freight forwarders to minimize expenses. NewSmartShip provides 30-60 days of free warehouse storage for clients.
- Schedule shipments during off-peak times to avoid costly rush fees.
Why choose NewSmartShip Logistics?
NewSmartShip sea freight forwarder broker provides air, rail, express, and trucking transportation. We also offer air and rail freight services. You can choose the mode of transportation according to your requirements and budget. Air freight is faster than sea freight but quite expensive. Rail freight is also costly, but it is cheaper than air freight. NewSmartShip has been in operation for more than a decade. The company has a strong network and expertise in international shipping. We also offer the best trucking services in the market. Many of our customers are well-known manufacturers in China. We can help you connect with reliable companies in the industry. Call us today to learn more about the processes we handle for clients importing goods from China.
