China is an exporting powerhouse and almost ever major country in the world imports goods from China. There’s tons of information on how to go about importing goods from China but this article gives four useful tips.
In 2015, China was ranked among the largest exporting economies of the world. In the same year, China exported goods worth $2.37 trillion. Some of the major exports included computers, telephones broadcasting equipment, integrated circuits, as well as office machine parts. The United States and the United Kingdom were some of the largest importers of goods from China in 2015.
Tip#1: How to determine the best product to import.
A distinction should be made between the importing of goods for immediate consumption and for sale. This article covers imported gods for sale.
Importing various goods can be profitable or not and therefore importers must do their due diligence. Beesley (2016) it is important for an importer to consider carefully the goods to be imported from the country. First, an entrepreneur should research the market to determine the best goods to import.
In the case of consumer goods and just like the goods being sold on platforms like Amazon and eBat, as part of the decision making process, importers should take into account product reviews. Good reviews and the amount of reviews can reveal the quality of a product (Beesley 2016).
Furthermore, once a business has determined the most appropriate product to import it is essential to have a relationship with the local supplier/suppliers in China. Close relations with local suppliers is worth its weight in gold. This enables the parties to build turst and stability of supply on which the importer can build a business, based on certainy (NIBusiness info.co.uk. 2017).
Tip# 2: Genuinity of products.
Before importing goods from China a company or an entrepreneur should be able to certify that the products they are buying are genuine. The Business should first request samples to verify the quality of the products. The business should alos do some diligence to confirm that it is working with a verified supplier or suppliers.
It is advisable for the company to visit the premises of the Chinese company especially where the business relationship is intended to be for the long-term and product quality is a key requirement.
Additionally, payment methods should be formalalized to mitigate fraud and to avoid the sale of counterfeit. Lastly, when starting to import from China, it is advisable for businesses to import few products first and increase the quantities gradually once the business has established that it is dealing with authentic suppliers that are selling genuine products (Beesley, 2016).
Tip# 3: Understand importing regulations.
The Importing of goods for resale is regulated and this applies to the importing of goods from China to the United Kingdom or the United States. Companies must comply with import regulations.
Beesley (2016) in the United Kingdom a trader should ensure they make a declaration to the HM Revenue and Customs. They should also understand the UK trade tariff, which informs importers and exporters on the import duties they are required to pay.
When importing to the UK from China, a business owner may also have to use commodity codes that are necessary for imports outside of the European Union.
In the United States, a trader needs to pay the import duties, which are paid in relation to the load or import. Moreover, trade barriers and import rejection laws should be considered before importing to the United States.
Tip# 4: Best imports.
China manufactures diverse range of products for the export market. Some of the most exported products include electronic equipment, pumps, engines, machines, signs, lighting, furniture, crochet clothing or knit, clothing, plastics, technical medical equipment, vehicles, footwear, iron and steel products (NIBusiness info.co.uk. 2017).
Whatever the product that is being considered by a trader to be imported from China, the best practice is always to carry out due diligence. This includes the following:
- Checking with your local customs authority and buying initially in small quantities.
- Identifing your import rights and obligations
- Identifing the goods you want to import and ensuring the quality is being met
- Ensuring the goods you wish to import are permitted into your country
- Classify your goods and calculate the landed cost or import duties.
Importing from China is a potential business activity that organizations whether big or small can carry out and profit from. Similar to starting a business in China and selling to the Chinese, it is important to research the market to determine the various products available and whether the activity will be profitable.