In this article, we will discuss some points that you need to take into account when you import products from China with the aim of reselling. Do you only want to buy products for your own use? Then read the article specifically for consumers.
Import from China that pays attention
There are some points that you entirely must take into account before you order. We have written these tips for importing process from China for you. Please read this carefully before you contact the manufacturers. A warned person counts for two.
What is important to know is that you as an importer are accountable for your products. Anyone who buys a product from a USA supplier can then recover any damage from this supplier. When importing products, the responsibility lies with the importer. For example, electronics have been tested in the United States of America, that it cannot cause a fire. If you import and sell a product from China while it is not tested, you are at risk. This way the product can cause a fire that you could be held responsible for.
What costs will be added?
The prices of the Chinese manufacturer all look very attractive. You buy a product for a dollar which you can sell in the USA for at least five or four dollars. But what costs are still higher than this one dollar? It would be too good to be true if this is the only amount you have to pay. Who imports from China may face the following costs:
• Import duty
• Shipping costs
• Customs clearance costs
Not everyone gets to deal with all costs so that we will explain them further.
With an amount higher than 700 dollars, you are obliged to pay import duty. This is a percentage of the purchase value. Often it is around 2 to 5%. The exact amount depends on the product type. For an overview of this, you can go to the website of the American Customs. This amount is paid to the US state and thus still comes on top of the purchase price.
The VAT rates in the Netherlands are 0, 4.5,15 and 16%. This tax is charged depending on the type of product. For medicines, a rate of 0% applies, for the basic need a rate of 4.5% and the other products 16%. The products you import from China will mainly fall in the 16% segment. You have to pay this amount before you can receive the products. With the quarterly declaration of your company, you can claim it back.
Customs clearance costs
If your order arrives at the port, it must be cleared through Customs. The customs clearance arranges the transport company for you, but this does require customs clearance costs. Is it a small order like a product? Then a standard amount is calculated for this. Is it a more significant order? Then it becomes customization; the price is based on the size and weight of the package.
It is also possible to have your goods insured. You can, for example, have them insured for damage incurred, but also for damage your order makes to goods of another party.
What many folks do not identify is that the shipping costs can be paid in two different ways. The sender, in this case, the manufacturer, can pay the shipping costs. It is also possible that you as a buyer will pay for the shipping costs. Make sure you know in advance who will pay for these costs.
Sending your order
When sending your order you have different options. You could let the Chinese arrange the shipment, but you could also hire a US agency that can arrange everything for you.
Published by Mudassar Ali