Imports-Exports – 3 Things You Should Consider Before Importing From Overseas

Importing goods from China is not as easy as some people might think. Since you are from two different countries, you don’t share the same set of export/import mechanisms. As an importer in your country, there are things that you have to consider for domestic trade such as import duty, import customs cost compliance as well as international logistics.

But with diligence and careful assessment of your import trade, you can still find this business quite rewarding. So in case you are planning to import goods from China directly to your home country, here are a handful of important tips on how to import from China that you can refer to and follow.

Tip # 1 Check out and scrutinize the business nature of your prospective import supplier.

Make sure if you are dealing directly with the manufacturers, or transacting with third party import suppliers or Chinese trade agents. You see, with manufacturers, you have faster responses on your requests with regard to the design, development and production of the goods you intend to import. This also lowers your import costs.

If however, you prefer to have a broader and diversified line of products, dealing with third party import suppliers is recommended as they have wider channels and connections within many industries. On the other hand, working with fourth party import suppliers is generally not recommended.

Tip # 2 Pay close attention to payment terms.

This is a must to all those who are just starting in the import business. Generally, a letter of credit is used in trade with the import suppliers in China. And if you are not familiar with this or Yuans, it is best to consult with your bank and get detailed information about it as well as the costs. Also, you may need to contact a major bank in Beijing or Shanghai to see how they might be involved in transactions.

Tip # 3 Estimate your possible landing cost as close as possible before placing your order of import goods from China.

What is the landing cost? The landing cost is basically the sum of FOB (free on board) cost of goods and transportation costs. FOB is quoted by your freight forwarder – ocean, land or local freight.

This is recommended because there will be cases when some hidden import costs may appear. Thus, anyone who would like to get into the business of product importation is advised to consult with an import-oriented company to discover these possible hidden costs that might surprise you along the way. Better yet, have a small test order.