The Basics Of Payment And Shipping When Importing From China

Once you’ve gone through the process of finding a reliable supplier from China, it’s time to settle the payment terms and place your first order. Though the process of shipping might require some paperwork and will seem complicated in the beginning, you will get the hangs of it after you do it once or twice.

When you import products, you are the Importer. Legally speaking, the Importer is responsible for all the products that the company receives. You have to make sure that all the safety regulations are met and that all the legal paperwork is in order. Check all the requirements of the country of destination. If you’re importing to the United States, you have to comply with the regulations of a series of agencies like the US Customs and Border Protection, FDA, DOT, ATF, and USDA. Go on the websites of these agencies and read all the legal provisions before actually starting to import.

It’s a good idea to hire an inspection company to go to the factory and check the products from the early stages of production to the end. This will prove useful in case of quality control and it’s a guarantee that you’re going to get quality products, which you can successfully sell.

You will probably need help with complying with the legal requirements and also with organizing the shipment, at least in the beginning. In order to make sure that everything will be in order, find a customs house broker. A customs house broker is an expert in customs regulations and will help you cover all the aspects related to importing your products. If, for example, you wish to import textile products, be aware that the regulations are complex and without professional help you might get in trouble. Getting in trouble means that your shipment might be stopped at the border and the authorities can take legal measures against you.

Beside the customs house broker, you can get help with the shipment from a forwarder. The forwarder will organize all the aspects related to getting the products from China to your location.

Both the customs house broker and the forwarder will cost you some money to hire, but it’s essential to have their help. Local international trade organizations and the customs office can offer you a list of both services.

When placing an order with the Chinese supplier, you might be asked to offer an upfront payment of 30%. The upfront payment is quite usual and it covers the production costs. The rest of the money is paid after the shipment arrives. You can always try to negotiate the amount of money paid in advance.

Always place a trial order first. Attach a purchase order, which should contain the description of the product and all required shipping documents. Make it very clear to the supplier what products you want to be sent back to you. Keep an eye on how the transport is going and on the customs formalities. Remember that you will be responsible for the products, and not the broker or the forwarder. Keep all the customs documents on record for several years.

Once you receive the products from China and everything is cleared, you can start selling.