How to initiate the import from China?
The Import of goods from China
The import of goods from China is the one of widely chosen directions for enterprises all over the world. Low manufacturing costs and diversity of the assortment available make Chinese products more attractive for many brands. In spite of numerous benefits, the import of goods from China means challenges that requires appropriate and adequate knowledge. This article outlines how to start the import, its crucial aspects and sale pages related to the topic.
The initiation of import from China
To initiate the import, it is worth considering the subject of import. Then, the importer has to analyse market in relation to the success on the new market and scrutinise profiles of providers to filter out the worst. There are portals such as Alibaba, Made-in-China, or Global Source that assist the importer in coming in contact with Chinese producers and providers. The next step after the choice of trading partners, is to verify the credibility of the company through reading references and certificates. While planning preliminary budget, the planner cannot forget about transportation costs and customs clearance.
The import from China - invoice, Economic Operators Registration and Identification Number, Certificate of Conformity
While completing all necessary documents, it is worth remembering that Polska is the member of EU where all import partners must conform to specific directives. There is the list of necessary documents for import from China below:
- Commercial Invoice. This is the basic document in the process of import that confirms the purchase of products. It includes information about the seller, purchaser, the type of product, the amount of product, the price of product, the payment method and delivery terms.
- Bill of Lading – Air Waybill (air transport) , Railway Bill of Lading (railway transport) or CMR (Convention on the Contract for the International Carriage of Goods by Road). This is the transport document which confirms the transmission of goods to the carrier.
- Packing List. This is the detailed list of contents of the parcel – the amount of goods, the type of and weight of particular parcels (cartoons, pallets) which is crucial for customs clearance.
- Certificate of Origin. This is the document which confirms the source of import which can help to require beneficial customs charges.
- Customs declaration. The importer has to put up the declaration with the help of customs agency. It includes information about the value of imported goods, the country of origin, customs tariff codes and compulsory charges.
- The Certificate of Conformity. The import of goods outside the European Union territory undergoes the control of quality and has to meet the European safety standards on a level with member states. This is why the import of electronics, toys or medical equipment requires the Certifcate of Conformity that confirms the quality of goods along European directives,
- Insurance Policy. This document, if optional, is advisable if the parcel from China is insured while transporting. It confirms that the lading is protected in a case of harm or quality loss.
- Licenses and permits. Some goods can require special licenses or permits, for example medical products, chemicals, groceries and weapon. Other documents are also mandatory based on the type of products.
- Phytosanitory and Veterinary Certificate. While importing some plant-based products, animal products, food or biologically grown products, the Export Health Certificate may be needed.
- Economic Operators Registration and Identification Number (EORI). This is the European Identification Number for economic entities used in customs services. All companies and natural person which are involved in import, export or other customs operations in EU, have to be identified with this number. This is an inherent element to carry out all formalities for the customs clearance of parcels.
Certificate of Conformity vs Import from China
Many of products imported from China have to meet EU quality standards, and the one of most important ones is the Certificate of Conformity that confirms the European safety standards. Importers from China are in charge of making sure that products are attested with this certificate, especially while importing electronics, toys or medical equipment. A lack of this document can lead to problems with customs clearance and financial punishments.
The certified and uncertified Chinese translator and native speaker
The overall cost of import - Value-Added Tax, customs
The preparation of the sufficient budget that includes all charges is essential for completing the transaction. The costs related to import from China encompasses many elements. There are the main ones below:
- The cost of purchase at dealer’s price in China
- Customs – they vary against the category of products
- Value-Added Tax (23% in Poland)
- Transportation cost – depends on the mass and volume of goods and the method of transportation
- The cost of customs service for the sending the parcel
- Storage cost – depends on the fact if the magazine is rented or not and handling charges paid for forwarding firms and logististics terminals.
- Additional charges such as certificates, surveillances, translation of documents or licenses.
For many beginners, the intercessor may turn out to be priceless assistance. The intercessor contacts and negotiates with clients, controls the quality of goods, arranges the transportation and completes formalities required by customs service.
The cooperation with Chinese wholesaler’s such as Alibaba, Made-in-China or DHGate occupies high position in the classification of import models. Such process boosts the sale of the bigger amount of products at lower unit price which mounts up the initial costs but imposes higher profit margin. While importing the bigger amount of batches of products, it is necessary to take into consideration their storage, the amount of goods and logistic problems.
Yearly settlement from import from China means all accounting and tax formalities which have to be met by the importer after the import. In Poland, this process consists of:
- The calculation and payment of customs duties (customs, Value-Added Tax or other charges)
- The inclusion of import in the account book or in internal accounting system
- The provision of appropriate documents (invoices, customs declarations) to the Internal Revenue Service and customhouse.
- The provision of declarations of income, for example VAT-UE or VAt-7, if the import affects VAT
A natural person can also import many goods for one’s private use and for trade. In a case of small parcels, a person can use popular platforms such as AliExpress or Temu, however, it is worth considering setting up the business for bigger amount of goods. The import on the bigger scale involves the completion of appropriate documents, tax and the custom clearance of parcel.
The importers from China and the trade with China
There is a well-developed export network in China which offer a diverse array of products. Many importers use platforms of B2B such as Alibaba to find trusted Chinese providers. The important step is to verify the credibility of Chinese partners through reading references, certificates or reaching the opinion of previous clients.
Podsumowanie
The procedure of import from China is an extraordinary occassion for development in business but requires much preparation and the familiarity with trade legislation and budget planning. The choice of qualified Chinese trade partner, the understanding of charges and customs documents with the most effective method transportation are crucial steps which lead to the completion of import process.
Author: Weronika Ochmańska
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The import from China - The questions that users often have
The import from China - what the transportation method?
There are many means of transport. Based on time constraints and budget, we can decide on maritine, air or railway transport.
How to check the quality of goods from China?
- the testing of previously ordered samples before the formal transaction
- the checking of certificates of conformity accepted by international markets and of references
- visiting the company in person, if possible
- making a contract that includes the quality assurance
How to initiate the import of goods from China ?
First, you have to choose the trusthworthy Chinese provider with quality assurance. Secondly, you need to study law legislation, receive licenses and customs documents and eventually prepare accurate logistic transportation.
The import from China - what the carrier?
The most popular, fast and safe delivery companies are DHL, UPS and FedEx. In a case of smaller parcels, China Post or SF Express can arrange import at lower prices.
How does the import from China look like step-by-step?
The process of import from China originates in the choice of provider, negotiation of prices and making a contract. Then, there are the transportation of products, custom clearance and the payment of tax and customs to enter the local market. And eventually, the importer has to prepare the settlement for the import, appraise the value of commodities and make invoices.
VAT in China - How much is the Vat while importing from China?
Such VAT regularly amounts to 23 %. It depends on customs value and costs of transportation.
The import from China - how to settle for VAT and customs?
- The payment of VAT for customs value which involves the part of imported goods, transportation and insurances
- The payment of customs charges which depend on the type of goods
- The deduction of VAT if an entrepreneur has a business activity which is the subject to VAT taxation in Poland.
What to import from China?
On account of competitive prices and vast assortment, it will pay off when we import electronics, home appliances, clothing, cosmetics and products form health industry. Steel, chemicals and car shares often undergo import because they characterise good quality and availability.
What is the most important when we import from China?
- the fulfillment the European norms
- the choice of appropriate provider
- an accurate transportation
- the payment of customs and other costs related to import
What are the methods of payment while importing from China?
Chinese partners accept:
- Letter of Payment (L/C)
- Telegraphic Transfer (T/T)
- PayPal
- Escrow Services that guarantees full safety.
The choice of the method of payment is related to the transaction volume, the appraisal of goods and the degree of trust between the participants of contract.
What are the most popular ports in China ?
The Ports of Shanghai, of Shenzhen and of Ningbo-zhoushan stand out with high capacity and connection with many international markets.
The Ports of Guangzhou of Qingdao and of Tianjin which export a diverse array of products.
