This article will guide you on the steps and precautions that should be taken when sourcing from China. This is Part III of a 101 series that has been culled by a certified sourcing agent in China – Matchsourcing.
China is among the leading countries with a supply of high-quality products. Products from China are considered by most customers and retailers since the quality is not compromised. You might be asking yourself how you will start the whole process of sourcing from China at some point. Before everything, let us have a look at a few factors to put into consideration before sourcing from China.
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Know your import rights.
When you acquire products from foreign sources, you now become the importer. Companies like Match Sourcing will help you handle everything and deliver to your warehouse. Then definitely it will save you a lot of time and money. Before you make an order of commercial goods into your state, maybe for business purposes or just for personal use, it is important to know if you have the import rights. For example, If you reside in Canada, you will need to have a Business Number given by the Canada Revenue Agency (CRA) first. so different countries have their own requirements, find out what is your right in your country.
Come up with the products you want to import.
Most businesses gain more profits by selling their products. Picking up the wrong products means you will be losing both time and money. In case you will turn to be a successful importer, the first thing to prioritize is to go for the right product for reselling. You need a product that is going to stand up in case you are planning to have your name behind it, so go for a product to be proud of when selling. Your products will have a bigger definition to your business; this means your products are your business. It is advisable to choose products that you would buy or at least know a lot about and you can give a few explanations from customers’ inquiries.
Make sure the products are not prohibited in your country.
Some products are not allowed to be imported into some countries. Different countries have a different list of prohibited products. Also, confirm whether the products you want to import are subjected to any permits or even restrictions by your government. It is your responsibility to ensure that the products comply with your country’s rules and regulations. Importing products that are prohibited by your country might end up getting you fines and penalties.
Calculate The Landed Cost.
Get the 10-digit tariff classification number from each item you want to import. Use those 10 digit numbers along with the Certificate of Origin to know the rate of duty you must incur when importing the products. Then later you can easily do the landing cost calculation. You can calculate the landing cost by:
- Asking for the product price from your supplier
- Getting the shipping charges from the freight agent
- Getting the charges of customs clearance, customs duty, and tax, land transport should also be considered to deliver your products to your warehouse.
It is important to get landed costs earlier; to help you determine the price of your product since no business person would want to lose customers for quoting their prices so high. Landing costs can be higher than you were expecting, you can try to come up with ways to reduce the cost elements. If the landing cost balances well with your budget, you can go ahead and start the shipping process.
Place order after finding your supplier.
Make your order with the supplier or sourcing agent. The moment you have picked your best supplier, follow up the production, quality inspection, packaging, and shipment.
Make Arrangements for your cargo transport.
The costs associated with shipping goods are so many, they include container fees, packaging, terminal handling, and broker fees. If you do not have a supplier or agency to help you with shipment solutions, you need to contact an experienced freight company. For you to come up with a complete picture of logistics costs, each of those mentioned factors should be considered.
Once you are satisfied with the freight quote, you can now send your supplier’s contact details where the supplier will be contacted and your products packaged ready to be delivered.
Track your logistics information.
International shipping of products takes time. To ensure that your goods will arrive at the destination on time, you should pay attention to the logistics information so that you can handle the problems with the freight company in time.
Normally the owner of the goods being shipped will be notified via an arrival notice within 5 days or less of products arriving in the port or airport, by the destination agent listed on the bill of lading.
Get your goods.
After receiving a notification that your order has reached your port or the airport, make arrangements with your customs broker to clear them through customs and quarantine if applicable. if all goes on well then it is your right to pick up your shipment.
In case you picked a door-to-door service then you wait for your order to be delivered to your doorstep. After you received your goods and verified that they are of good quality, well packaged, and labeled, it is advised to send an email to your supplier.
Conclusion and reminder!!
China is known for having the best manufacturers and suppliers of goods. But this does not mean that there are no counterfeit products or individuals who will try to steal from customers. Make sure you call the factory directly through your phone to confirm with them. Also, work with trusted sourcing and quality inspection agents during the importing process.