Manual for own import from China
China Import – It’s lucrative to import from China yourself, but there are more hurdles and risks than some might think when importing goods from China themselves. In his first 9-page e-book, David Frisch, the owner of an experienced import agency, explains which rules should definitely be observed when importing from China. Further more detailed consequences for each point of the first summary are to follow and serve as support for companies that are importing their own China for the first time to plan.
The middleman can be eliminated by importing from China , but you then bear the risks in foreign trade yourself, which the middleman would otherwise relieve you of. This can only be worthwhile if you are aware of the risks and take all measures to minimize the risks.
The e-book can be downloaded here free of charge. You are welcome to link the e-book free of charge, offer it as a free download yourself or give it away as a PDF e-book. If you contact us via our contact form and provide your email address, we will be happy to inform you regularly when new editions of the e-book about the China import are published.
The 10 most important rules when importing from China
Avoid risks when importing from China
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This is probably the TOP 10 most important rules when importing from China:
1. The cost calculation
First make yourself aware of which products you want to import. Carry out a precise market and price analysis in Germany so that you can ultimately calculate exactly which prices you need in China in order to realize the necessary competitive sales prices in Germany.
Please note that additional costs of up to approx. 30% of the price of goods in China for logistics, customs clearance and insurance may arise at the purchase price in China.
Be aware that the purchase quantity must be realistic in order to get offers from Chinese suppliers and for the import to be worthwhile.
2. Customs regulations/ compliance procedures
Get comprehensive information on the customs and import regulations for the desired product in the EU. You can also call the information center of the customs office. Any necessary certificates should be requested from the supplier and checked for authenticity and validity by the issuing institute. In this context, you can also apply to the customs authorities for your EORI number, which you need for importing.
We refer to the conformity procedure as checking and documenting compliance with all import regulations, e.g. For example, there are CE guidelines for certain products. In particular, products must be REACH-compliant, ie they must not contain any substances that are restricted or even banned in the EU.
3. Manufacturer research in China
Time should be invested in manufacturer research. Especially when researching online, you will come across a large number of intermediaries, of which the Chinese intermediaries in particular are very happy to pretend to be “the manufacturers”.
Carefully analyze the address and website of the manufacturer and also do some further internet research to find out if this is really a reputable company.
The AHK in China or the German embassy in China may also be able to give you information about the type of company. It is best to obtain the “company license” and the “export license” from the supposed business partner in China in advance. If it is a real manufacturer, the company is also quite willing to provide you with copies of these documents.
The best way to contact the manufacturer is through the official website and through the official company email address. Chinese intermediaries will also be happy to pretend to be employees of the manufacturer and will also send you the desired certificates. In the case of mere online contact, it is difficult to distinguish whether one is really negotiating with an employee of the company or with an intermediary. You can also contact the contact person by telephone using the company’s official company telephone number.
If you have received the first prices, it makes sense to negotiate. However, compare the prices you receive first with those of competing companies and do not negotiate too far below the price corresponding to the market conditions in China, otherwise the supplier will save on quality.
4. Payment agreement with the supplier in China
Make a payment agreement with the supplier in China in advance, which minimizes your risks as an importer. But also remember to make these payments to the supplier on time so that you don’t get into an unpleasant delay.
In any case, the majority of the payment should only be made after the goods have been accepted in China, so that you still have room for negotiation during the goods inspection or can have the supplier make improvements if you find any defects. If you have already paid for the goods in full or almost in full, the supplier will not be willing to undertake costly repairs.
5. Sample order from China
Order samples from the shortest selection of suppliers first. The best thing to do is find a logistics agent in China who will pay for the samples for you closed in China, if they need to be paid, and then collect them and send them to you. This saves you transfer and transport costs. This gives you the opportunity to check the samples and determine whether the quality is sufficient.
You should also urgently examine the product for hidden defects in order to avoid high financial losses due to high complaint rates after the imported goods have been sold.
6. Order description for the manufacturer in China
Create an accurate order description for the manufacturer in China that includes all relevant data. The following points should definitely be included:
- Payment agreement (it is best to agree on a down payment and an installment payment, for larger goods value an L/C payment is also possible)
- Incoterms (it is best to arrange FOB delivery to avoid incalculable cost risks)
- Which documents must be provided by the supplier (in the case of sea freight and an FOB agreement, these are e.g. the B/L, the packing list, the commercial invoice and the certificate of origin – Form A)
- Warranty periods and details of warranty processing
- product details
- Details on packaging, imprints, labels, EAN, barcodes, etc.
- Shipping marks, that means the labeling of the shipping boxes
- The dimensions of the boxes, if necessary details on pallets or pallet boxes if delivery is to be made accordingly.
- Other Seller Obligations
7. Conclusion of the contract with the manufacturer in China
In any case, have the supplier issue you a pro forma invoice with an authorized signature, official company stamp and official company bank details. Check the authenticity of the document by calling the manufacturer.
It often makes sense to let the order agreement (see 4.) become part of the contract. If possible, visit the manufacturer in person to conclude the contract, this can strengthen the relationship of trust and you will get a personal impression of the factory and your contact person in the company in China.
8. Communication during production with supplier in China
Maintain regular contact with the supplier during production. Always ask about the production status and whether the delivery date will be met. If you don’t get in touch during production, the supplier assumes you’re not in a hurry and will most likely miss the delivery date.
9. Goods inspection prior to shipment of the goods
You should never have goods shipped without looking at them again first. Do not forget to randomly check your goods before shipment and determine the number of items in your products so that you receive what was ordered. A stacking and a drop test should not be left out. In the case of particularly high-quality products or large deliveries of goods, a test institute such as SGS or Hansecontrol should also be commissioned.
10. Choosing the right logistics
Let a freight forwarder advise you in detail on logistics. Bad planning can also result in high unplanned costs in logistics. Plan in advance with the supplier how the goods can be packed to save space. Have the supplier provide you with the goods volume (in cbm) and weight in good time in order to obtain offers from forwarding agents. When inquiring with the shipping company, also ask about the shipping times. These can be between 25 and 35 days for shipments from China. If the duration of a shipment is significantly longer, this should also be reflected in the offer price. Try to have only one carrier from loading in China to unloading in Germany, so that there is only one contact person in the event of an insured event and the question of which carrier caused the insured event does not even arise. Cargo insurance must of course be covered from the start. Many shipping companies do not point this out.
For shipping from China , we recommend the experts for sample shipping from China, express shipping from China, sea freight from China and air freight from China www.china-import.net, so the logistics for China imports can be handled without major hurdles.
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