Export agents in China are very commonly hired by Chinese exporters. Some of these export agents are also 3rd-party suppliers, while others just provide export services. You can also visit trade fairs (two trades shows in China are worth mentioning, Canton Fair and East China Fair), search suppliers on Google Map, check customs data, go to local wholesale market, filter sellers on retail sites and use many other ways to find potential suppliers. If you don’t have much experience dealing directly with suppliers in China, another option is to seek the help of a commission-based China sourcing agent or sourcing service provider. However, the fee can range from 3 to 15% of the purchase price. Be aware that there might also be hidden commissions between sourcing agents and Chinese manufacturers. The biggest benefit of working with a good agent is its network and relationship with the qualified and trustworthy manufacturers, whom you might find hard to access on your own. If you decide to go this route, after working with sourcing agents a few times and familiarizing yourself with the process, you can eventually manage your own deals without their help.
Client references. A reputable supplier should be able to provide you with client testimonials and references. Once they do, be sure to check them. Business licensing information. You want to be sure that any company you do business with is properly licensed and in compliance with all applicable trade laws in order to avoid future legal problems which may affect your business. Manufacturing and staffing information. Be sure you understand the exporter’s relationship to the manufacturer. Do they manufacture the product themselves? If not, do they get paid by the manufacturer as well? The name and location of the factory producing the product. If an exporter refuses to provide you with the name and address of the factory where the product is manufactured, they may not be a reputable supplier.
Cost is not the only the consideration when choosing a supplier; quality may be just as important, and the manufacturer’s experience can be a good indication of the quality of work.
The website should offer the supplier’s physical addresses and contact details. If this information is absent, ask for their contact details and if they don’t mind you coming in and checking on their offices. This shouldn’t be a problem at all if they are not hiding something from you. Visiting trade shows is a great way to see suppliers face-to-face without traveling to China.
A valid passport from your current country of residence. A black and white photocopy of the picture page of your passport. Black and white photocopies of previous Chinese visas you have obtained (if any). A recent, passport-style photo of yourself. A completed visa application form (available at the Chinese Embassy’s website). An invitation letter from the supplier you are meeting. A fee of approximately $140, plus any additional service or administrative fees. [2] X Research source It may take three weeks for your visa to be processed and shipped once you have applied for it. However, you may be able to pay for expedited service. Ask the consulate for details. [3] X Research source
The focus is on relationships. Chinese do not do business with companies, they do business with people, and each business deal creates a new relationship with the other party. Chinese exporters are therefore not likely to jump into a deal until they have had the opportunity to get to know you a little. Reliance is on moral influence, not legal practice. Chinese executives tend to rely more on a party’s moral obligation, rather than its legal one. This does not mean you should ignore the wise business practice of having a signed contract, but you should let your desire to get a signature on a contract take a back seat to building a trusting relationship where each party will feel morally obligated to perform, even if they did not have a signed contract. Hierarchy is important. Shaking the hand of a low ranking executive first or calling a high-ranking executive by his first name can jeopardize interpersonal relationships and affect a Chinese executive’s willingness to negotiate. Pay close attention to how executives address each other and follow their lead. [4] X Research source
Carrier air mail. This service is best for samples and smaller orders, but can be costly. Check with companies like DHL International, UPS, and EMS to set up an import shipping account. [5] X Research source Sea freight. For larger orders and bulky items, or to save money, you can use sea freight to import your items. This type of order is shipped as either a full container load (FCL), which is a full shipping container for your items, or a less than container load (LCL), which allows your shipment to share space in the same container with other shipments. FCL shipments are cheaper per cubic meter but require a large order to make the cost worth it.
Remember that the wholesale cost of your product is not simply the recorded cost of the item on the order, but the total cost of having it shipped to you, including taxes, tariffs, shipping, and insurance fees. [6] X Research source A letter of credit is commonly used in trade with China. Go to your bank to get detail formality and cost. Payment for Chinese exports is most often made by credit card, but many Chinese suppliers also accept other forms of payment, such as cash, check, or even PayPal. You need to have a good estimate of the landing cost before you make your order. Landing cost = cost of the goods + transport costs by forwarder + import duties (if any) + local transport costs + cost of service providers (inspections, agents, etc. ). There may be many hidden costs and you can consult an import management company, but the best way to avoid bad surprises is by making a first order of a small quantity, and collect all costs and fine tune your landing cost estimate. Use escrow services for payment whenever possible. Escrow companies allow a buyer to deposit funds with an independent third party, to be delivered to the seller once he or she has fulfilled his or her end of the supply and shipping agreement.
Don’t send your payment to a bank account that isn’t registered under the name of the company you are ordering from. Don’t send your payment to a bank account registered in a different city from your supplier, even if the name on the account is similar. Otherwise, you will simply lose your money and have virtually no legal recourse to get it back.
Neglecting compliance can be very costly. This may force you to pay expensive and unexpected customs duties, such as the anti-dumping duty, as well as risk delaying your customs clearance. This will cost you expensive storage fees at a railway station or container yard. Avoid these expenses by hiring a qualified customs broker. Find a certified broker by searching on the website for the National Customs Brokers and Forwarders Association of America. [7] X Research source National Customs Brokers and Forwarders Association of America
You will need a specialized license to import items that fall under certain categories, such as food products, plants, animal products, prescription medication, trademarked items (brand name or designer goods), and copyrighted items (CDs, DVDs, etc. ). The specific licenses needed for each good may come from different government agencies. You can find which licenses you need by visiting the US Customs and Border Patrol’s website and searching for “licenses and permits. "
Identities of the buyer and seller. Importer of Record number. Consignee numbers. Country of Origin. Ship to party. Harmonized Tariff Schedule of the United States number (if your Chinese supplier has some export experience, he should have the harmonized schedule code, or HS code, for your product). Manufacturer or supplier information. Container stuffing location. Consolidator. [8] X Trustworthy Source U. S. Customs and Border Protection Federal law enforcement agency responsible for monitoring U. S. borders, facilitating international trade, and upholding customs laws Go to source
You should be aware of any entry requirements specific to the particular product you are importing, including those of federal agencies besides CBP. For more information about getting your product through U. S. Customs, read Basic Importing and Exporting at CBP’s website: http://www. cbp. gov/trade/basic-import-export.
Bill of lading. Packing lists. Commercial invoice. Certificate of origin. Customs bond. Inward cargo manifest or immediate delivery form.
Tariffs may vary by origin as well. For example, liquor (alcoholic beverages containing over 20 percent but no more than 50 alcohol by volume) is taxed at a standard rate of 8. 4 cents per kilogram and an additional 1. 9% of total value. However, this fee is waived when the items are coming from certain locations (including Canada and Singapore). [9] X Research source If any of your filed documents are inaccurate, you will need to file corrected documents before you can pay your duties. Your duties are due within ten days of the receipt of your initial import documents. Your customs broker should be able to help you estimate the cost of your duties before you import the goods.
