Because of the growing trend of globalization today, large numbers of facilities regardless of size or whether small or large-scale have opted importing products abroad. Of all the nations, China appears to be the most sought after country to import units from, simply because of cost efficient labor. Importers are now able to avail of a wide variety of products at very competitive prices. In fact, several capitalists have invested into this kind of business since it guarantees profitability. If you’re a new to the importation business, you might be wondering, how much does it cost to import from China?
China has opened its doors to international investors when it expressed its desire to join the World Trade Organization (WTO) in 2001. While it adheres to the rules and policies of the organization, you must also bear in mind that it has intricate local policies as well. If you intend to venture into importation, you must first have a good understanding of all the things involved in the process in order to reap the rewards and success you long for.
The Real Cost of Your Imported Product
It is important that as an importer you view and know to ensure a proper and continuous flow of goods you import. It is not enough to just be able to negotiate the prices. Buying from a direct supplier or a third party agent should be well documented. This is how you can reduce any surprises along the way. The cost of the units is more often than not based on your order’s quantity. As your order’s quantity increases, the final price of the commodity decreases.
Import Tax and VAT
When you import products into your country, you are expected to pay import taxes. This is also known as import duty or import tariff. This is collected by the customs authority or any other regulating body involved in the trade of goods between two countries. Not only is this another form of income for your government, this is also an excellent way to control the import of certain goods. These taxes depend on the type of product you are going to import and where they come from. Take note of properly classifying your items, not doing so could lead with you getting overcharged by customs. The Harmonized Tariff Schedule is used so that you can correctly calculate the import taxes on items imported into your country. Every country has its own list of corresponding tax rates for every imported product.
Take note of the VAT or value Added Tax. The VAT is refundable. Euro VAT has the capability to also assist in determining the VAT charge and then identify the appropriate method to reclaim the VAT.
Hiring an Inspection Company that Can Do the Quality Check of Your Imported Products
The quality of goods should be seen by a local inspection team you hired if you want to double check. A detailed report can then be sent to you so that you can make sure that your commodities are as you requested them to be. Provide a checklist of things to watch out for to your inspection team. Lack of this crucial information may lead to disappointing results in the production of your items.
You may also consider having inspections done on the components or materials used in the assembly early in the process. This ought to help avoid any last minute quality problems. Normally, this is done a few days before shipping. This will prevent costly business mistakes.
Remember that it is your responsibility to make sure of the quality of your imported goods. Therefore, you have to finally make sure that the supplier’s shipment meets all the standards required by the government. Otherwise, the imported goods may be held by the customs and will not be given clearance.
Freight and Handling
Search for the best discounts when it comes to freight and handling. Consulting a customs broker is a very good option. Suppliers usually have a contract with freight forwarders. With this information, you may very well end up with the best deal for your items.
It is also crucial to be very knowledgeable with all the options you can avail for shipping. The FOB or Free on Board states that you are responsible for the welfare of your items. You are responsible for your own items as soon as it is loaded into the ship. The FOB is all inclusive of all costs which include cost of goods, transportation, loading and insurance. There is also the CIF or Cost, Insurance, and Freight, which signifies that the seller is responsible for the goods once they are onboard. You essentially pay the Cost and freight for your goods to be shipped to your particular destination. This fee includes the Cost of goods, shipping freight, and insurance. Cost and freight is the last on the list. Adding the value of the goods with the costs and freight determines your c&f. The price includes the Cost of goods and shipping freight.
Learn how to calculate the cost to import from China to any part of the world by legally by understanding the China Trade Agreement for Importing and Exporting worldwide.