Importing from China to USA: The Complete Guide

Importing from China to the US offers a better option of getting quality goods at a lower price.

But how you go about the importation procedure can be hectic due to the many processes that are involved.

That is why I have prepared this simple guide to help you understand the importation procedure from China to the US.

I have broken down the complicated process into a simple process that you can easily follow.

Have a look.

How to estimate Cost of Importing from China to the USA?

Here is an explanation too of these costs.
a) Cost of buying good from Chinese suppliers
b) Shipping cost from China to the USA
c) Cost of logistics
d) Calculate import tax from China to the USA

What is the documents for Importing from China to the USA?

· US Customs Invoice
· Commercial Invoice
· Packing list
· Bill of Lading/ Airways Bill
· Arrival notice
· Special permits

What’s the Import Handling Process to US?

This section takes you through the process of hiring these entities who will handle your cargo from China to the US.

· Hire freight forwarder from China to the USA
· Hire licensed customs broker from China to the USA

How to choose a Secure and Safe Payment Method?

To help you in choosing a payment option that will be secure, let me take you through the major payment options.
· Telegraphic Transfer
· Letter of Credit
· Online Escrow
· PayPal
· Cash
· Western Union
· International Credit cards

• Understand the U.S. Regulations when Importing from China

Step 1: Understand the U.S. Regulations when Importing from China

Perhaps the starting point when you want to import from China to the USA needs to be understanding the US regulations.

These regulations will guide you right from what you want to import to the taxes that you will pay for the imports.

Let’s look at these regulations.

· Product safety regulations & standards

There are specific regulations and standards that your products should meet before you import them to the US.

The process of getting your approval for your goods can be somehow complicated given the many regulations.

To assist you, here is a simplified way that you can go through this process.

Have a look.

I have described these safety regulations and standards as per category:

1. Cosmetic products

When importing cosmetic products, you will have to ensure that they comply with regulations from the following standards: CFR Title 21 & 16, food, Drug, and Cosmetics Act, Safe Cosmetics Act 2011 and Fair Packaging and Labeling Act.

In addition to those, you will ensure that they comply with state regulations.

These regulations include California Proposition 65 – lead in cosmetics and California Air Resources Board (CARB)

2. Children’s products

When you are importing anything that is related to children, it should meet the regulations that are under CPSIA.

These regulations include: Taking the product samples to a CPSIA accredited laboratory and ensuring that your samples adhere to the safety standards

You also need to ensure there is fixing of a tracking label on each product that is permanent.

Failure to comply with these regulations will lead to confiscation of your products by the customs.

What you need to note is that all the laboratory tests, as well as the labeling costs, are your responsibility.

So, you need to make arrangements for this cost.

3. Electronic products

The FCC is the regulatory body that deals with imports.

As such, you need to ensure your electronic imports adhere to these regulations.

This includes having an FCC mark clearly on your imports.

On top of these, you can have other standards on your products if you want.

For instance, if you are importing electronic equipment for use in water, you can have standards from bodies like underwater Laboratories.

4. Chemicals and metal ores

At the federal level, CPSC regulates your chemical imports.

However, there is some regulation at the state level that differs from one state to the another.

On a personal level, you as an importer should submit your product for testing.

By doing this, you are ensuring that your imports have the correct amount of chemicals such as lead and calcium.

5. Kitchen appliances

If you are importing any kitchen appliances such as utensils, need to meet the necessary food contact regulations.

Such regulations include: the appliance should not transfer its elements including color to food, the appliance need not affect the smell and taste of the food in it.

Product labeling requirements

Whenever you’re labeling imports into the USA, it is important to consider the following:

· Labels indicating the Country of Origin

The first regulation that you need to have on your import is to indicate the Country of Origin which in this case is China.

This is a necessity if you are importing anything from China.

However, there are a few items such as watches that you can import minus the label.

You need to check with the customs authorities before importing your cargo.

· Textiles and apparel

If you are in the process of importing textiles or apparel, you need to ensure that they comply with OTEXA requirements on the labeling.

This includes fiber composition, care instructions, and language which needs to be in English.

Remember to inform your supplier of these requirements and the specifications necessary.

Don’t make a mistake of assuming that your suppliers know the details of your regulations.

· Laboratory testing documents and regulations

The purpose of having your goods tested is to ascertain if they are safe for consumption in the US.

There are various laboratory tests that you will subject your goods to depending on the type of goods you are importing.

In case your goods pass these tests, the relevant body will issue you with a certificate of conformity which you will give the customs.

Regulated imports from China to the U.S.

If you are planning on importing the following goods from China to the US, you will be required to seek permission before importing.

• Firearms
• certain fruits and vegetables,
• Certain animals, animal products and animal by-products.

·         Prohibited imports from China to the U.S.

You cannot import the following goods from China to the US. If you import these products, the customs will confiscate them, and you will have to pay fines.

• Drugs
• Alcohol
• Firearms
• Textiles and clothing
• Trademarks and copyrighted items

You can learn more about the U.S. Custom Boarder Protection.

Step 2: Identify Products to Import from China to the USA

Once you have understood the regulations that will govern your importation, you need to identify a product that you will import.

The process of identifying a product can be a challenge especially if you are starting your importation business.

However, here is a look at some of the ways you can identify a product to import from China to the USA.

First, you can choose to travel abroad on a mission to find a product to import.

Though this method will consume your time and resources, the probability that you will find the quality product is high.

Again, while on the visits, you can interact with potential suppliers who you can negotiate the details of your product.

The other method you can use is by getting manufacturers contacts.

This method involves getting calls from manufacturers from China who may want to supply you with their goods.

The advantage of this method is that you save the time you would have taken to travel to China.

Also, when you get a call from a manufacturer, it means that they know that you are interested in their product.

As such, you are in a better position to negotiate on the terms of the product.

The disadvantage with this method is that you cannot use it if you are a new importer since you are unknown to the international market.

As an importer, you have the upper hand of interacting with your customers.

This is yet another source of identifying a product to import.

When clients call to request a particular product, you can build data from it and with time, get to know what product to specialize.

The other method through which you can identify products to import is by attending trade shows and fairs.

Most manufacturers from China present their goods and the incentives they have if you import these goods.

You are therefore able to interact and choose a product that you want to import from China to the US.

You can also visit the U.S. government’s International Trade Administration for information regarding importation.

These offices have data of goods that you can import as well as possible suppliers in China.

Having said that, the top imports from China to the US include:

• Machinery
• Electronics
• Vehicles
• Medical equipment
• Organic chemicals

Step 3: Find Reliable Chinese Suppliers/Manufacturers

Identifying a product to import is just the beginning of your importation.

There are other aspects of the importation business that you need to consider.

For instance, you need to identify a reliable supplier who will be able to supply you the goods you want to import.

Numerous suppliers can supply your goods.

However, not all of them are reliable.

So how do you get a reliable supplier?

This section explains all the steps you can take to find a reliable supplier for your goods.

Keep reading.

Searching for Suppliers on Online Market Places

One of the quickest ways you can find a supplier is through trusted online market sites.

These sites offer an opportunity through which you can engage and choose suppliers who will deliver at reasonable terms.

These sites include:

· Alibaba

Alibaba is one of the sites that you can source for potential suppliers and manufacturers for your goods.

There are several advantages you can get by using Alibaba.

First, you can get a pool of suppliers which gives you an opportunity to select one that meets your specifications.

The fact that it is an online marketing site means that you can access it from virtually anywhere as long as you have internet.

This means that you don’t have to travel to China to search for suppliers.

Recently, Alibaba has introduced Alipay which is a secure means of making your payments.

You can source for a supplier, have them deliver your goods and pay them later.

· Made in China

Made in China is another online site that helps you interact with different manufacturers and suppliers.

Made in China, you can select a supplier then engage them.

Using Made in China means that you will have to agree with your supplier on the details of the trade including the mode of payments.

· AliExpress

A sister company to Alibaba, AliExpress offers you an opportunity to interact with retail suppliers.

So, if you want to import small quantities from China to the US, this is the site that you need to look out.

AliExpress will not charge you for shipping your goods when you make a purchase on it.

Your supplier will take care of this.

One of the most natural ways of buying a product from this site is to check on the reviews of other clients.

A supplier with a higher rating implies that their goods are of high-quality meaning that you can engage them for importation.

Lastly, you can track your cargo right from when it leaves your supplier to your doorstep.

Hire sourcing agents

The advantage you have by hiring a sourcing agent is that it saves you the hassle of looking for a supplier by yourself.

Sourcing agents usually understand the importation business, and they will hook you up with the right suppliers.

What happens is that once you explain your import details to your sourcing agent, they will use their networks to find you, potential suppliers.

Once they have a list of potential of suppliers, they can take you through the pros and cons of each supplier.

Finally, they will assist you to narrow down to that one supplier for your goods.

Some of the qualities you can look out for when hiring a sourcing agent include:

• Expertise in importation
• Fluency in Chinese as well as English
• A proper understanding of the Chinese business culture
• Experience with suppliers

Look for Chinese Suppliers in the US

Some suppliers have agents based in the US.

This can be a good source of finding a supplier who you can engage for importing your goods.

You can find information relating to such suppliers at the Chinese embassy.

This information includes their locations in the US and which category of goods they supply.

Consider visiting China to meet suppliers

The advantage you get by choosing to visit China to source for suppliers is that you get to interact with them on a face to face basis.

This will give you an opportunity to visit their manufacturing sites as well as observe the manufacturing process.

You will also get the opportunity to negotiate on the product details including the price and production schedule.

Also, you can use this opportunity to negotiate on the minimum order quantity.

Use China trade fair

China trade fair is an event organized by the Chinese government in the US.

It is an opportunity for Chinese suppliers to showcase their products to potential importers.

You can use this event to interact with various suppliers on the goods they manufacture.

Also, you can visit the manufacturer’s factory in China once you get their details.

Step 4: Request for Product Samples before Importing from China to the USA

One of the ways that you can ensure that you have the goods that you want is by getting samples from your supplier in China.

Once you have the samples, you can check on ensuring that that is the right quality.

Also, you can take the samples for government approval at the laboratory.

This will save you time when you are importing your goods.

Here are the sample details of your goods when importing from China to the US.

i. Receive and assess the quality of product samples

The basis of you requesting a sample is to determine if the sample is the right quality that you want for your product.

Once you have this sample, you can pass it through the relevant quality process.

One thing that you need to note is that some suppliers can be naughty when supplying you the samples.

What happens is that they will supply you a high-quality sample but deliver low-quality products.

To prevent this, try requesting the sample close to three times including using another address to compare the quality.

If you find even a slight deviation with no reasonable excuse, be cautious.

Sample quality can form the basis of your goods getting permission to get into the US.

When talking to the government agencies for testing, be keen on their feedback.

ii. Understanding the MOQ

The Minimum Order Quantity (MOQ) refers to the lowest quantity of a product that your supplier is willing to supply to you.

Different manufacturers have different MOQs depending on factors such as their production capacity.

You see, most suppliers and manufacturers don’t store the goods they produce.

So, when you order your goods, that is when they start the production process.

Again, the profit margin of most suppliers is pretty low which is brought about by the fierce competition that exists in China.

As such, for them to increase their profit margin, you will find most suppliers emphasizing a high MOQ.

This can be difficult especially if you are a small importer.

A way of lowering your MOQ is by negotiating with your supplier to reduce it.

Though practically, this will come at the cost of you having a higher price for your products.

iii. Sign a sales contract before bulk importing from China to the USA

Lastly, you need to sit down with your supplier and draft a sales contract before you embark on bulk importation of your cargo from China to the US.

A sales contract is an important element of your importation including as a proof of ownership or purchasing goods.

There are some instances where you will be required to produce this document, especially during inland transportation.

The details that you will find in the sales contract includes a description of your goods, terms of sale, payment terms and your details and those of your supplier.

Step 5: Choose a Secure and Safe Payment Method

One of the major concerns when it comes to international trade is finding a secure and safe method for making payment.

There are several means that you can choose to make payments on goods you import from China to the US.

However, you cannot just choose any payment method.

You need to minimize the risk that occurs when it comes to payments.

Some of the risks include you making payments without receiving the goods you ordered.

It can also be making payments for substandard goods.

To help you in choosing a payment option that will be secure, let me take you through the major payment options.

· Telegraphic Transfer

This is one of the oldest methods of payment that you can use.

It involves you wiring your supplier an advance payment before production of your goods and finishing up once you get the goods.

The risk that is available if you choose to use this method is your supplier not delivering after receiving the advance payment.

Ideally, you can use this method if you trust your supplier and if the transaction is for medium value.

· Letter of Credit

A Letter of Credit is the common and one of the most secure means of payment you can use when importing your goods.

By using a Letter of Credit, your commercial bank will undertake to pay for the goods you are purchasing.

The advantage of using this method is that there is a guarantee of your goods.

This is because your supplier won’t get paid unless you have received your goods.

You can use this method of payment when importing a large volume of your cargo from China to the US.

The limitation you have is that it is a complex process but that in itself serves to secure your payments.

Also, small suppliers in China don’t like using a Letter of Credit as a means of payment.

· Online Escrow

If you are a small importer let’s say for goods worth $5000, then you can pick online Escrow for your payments.

In China, Alipay Escrow is a common payment option which is owned by Alibaba Group.

Since Alibaba owns Alipay, it is enough evidence enough that this payment option is credible.

The disadvantage of using this method is perhaps getting goods that you didn’t order,i.e. low-quality products.

· PayPal

The popularity of PayPal as a method of payment in international trade is gaining momentum due to its improved features.

Most tech0 savvy supplier prefers this method of payment.

Ideally, you can use it to pay any amount of your goods.

However, there is a limitation to this method.

A transaction fee of PayPal is percentage based.

This implies that the higher the amount you transfer, the higher the amount you will pay.

Typically, what happens is that most suppliers who use this method will tell you in advance that you will cover this cost.

In return, you as the importer need to factor this cost on your selling price to stay the business afloat.

For better protection, always try to use “PayPal checkout” instead of transferring the payment directly to PayPal accounts.

· Cash

The common method of paying for any volume of your goods in China.

While making cash payments, you can either be present or have a representative.

However, this is the riskiest option when importing your goods from China to the US.

In the event of occurrence of any event, you are the one who will be on the losing end.

You, therefore, need to ensure that you use this option only for the small volume of goods.

· Western Union

Western Union and PayPal are ranked top on the ease of using it as a payment option for your goods.

Many suppliers in China prefer this method of payment due to its efficiency.

However, you need to be cautious when using this method.

This is because tracing back the payment in case you don’t receive your goods is hard.

As such, I would advise that you use western union only with those suppliers who you trust with the delivery of your goods.

· International Credit cards

International Credit cards have a limited usage when it comes to international payment options.

Mostly, those suppliers who deal with electronics and computer accessories accept this payment option.

Most suppliers are afraid of using this method since they have expensive terms of charges and also chargeback issues.

All in all, security of your transaction needs to be of paramount due to the risks involved.

Perhaps you need to note that these risks can happen to both parties.

Either you as an importer or your supplier hence the need to ascertain security from both sides.

Before settling on a method of payment to use for your importation, you need to consider several factors.

They include: How each payment company resolves disputes surrounding payments.

And the cost associated with the use of a particular payment option.

Step 6: Get Reliable Import Handling Process

The safety of your goods will be determined by how best your cargo is handled right from your supplier to your doorstep.

Much of these have to do with the people you entrust to handle your product.

This section takes you through the process of hiring these entities who will handle your cargo from China to the US.

· Hire freight forwarder from China to the USA

There are many freight forwarders that you can engage to import your goods from China to the US.

However, not all these forwarders are reliable when it comes to importing.

Again, the process of finding a reliable forwarder can be complicated.

Here are tips you can go through when selecting a forwarder for your importation.

1) Understand your business needs

Before you start looking for a freight forwarder, you need to analyze what your business will need for your shipping.

The importance of this is that it lets you come up with the requirement for your shipping.

By doing this, you can come up with a list of possible forwarding companies that can handle your shipping.

Things that you can factor in here include Volume of your cargo, shipment type, available modes of shipping, annual shipments and convenient method of payments.

2) Analyze the forwarder’s experience

When we talk about experience, many confuse it with mainly being how long a forwarder has been in the industry.

In as much as that is important, there is more to that.

Experience also has to do with finding out how reliable the forwarder is to handle your cargo.

You need to check if the forwarder has all the expertise that you will need to ship your freight.

A reliable forwarder will ensure accurate shipping time as well as handling any shipping related problem.

Some of the areas you can check if your forwarder can handle include customs hassles, port shutdowns, workers strike, cargo rerouting and warehousing issues.

3) Handling of multiple shipping

Your freight forwarder needs to be in a position to handle multiple shipping.

This can be possible if the forwarder has networked with different shipping companies which handle different shipments.

Also, your forwarder needs to be flexible to your shipping demand.

That is to mean if you switch from air shipping to ocean shipping, your forwarder needs to be able to help you.

4) Point of contact

One thing to note is that you need t access your forwarder.

We are all aware that anything can happen during the shipping process including delays in shipping.

Having offices where you can get clarification on emerging issues can help you have a peace of mind during importation.

5) Experience customs agent

Having a customs agent will help in quick clearance at the customs.

You need to check if the forwarder has customs agents in China and the US who understands the customs procedure in both countries.

6) Cargo insurance

An essential aspect of importing your cargo is to ensure that your shipment has an insurance cover.

While you can make arrangements for it on your own, a freight forwarder will offer you at a competitive price.

7) Communication level

Importing from China to the US can be hectic with all the details involved.

You, therefore, need a freight forwarder who will be in constant communication with you during the importation period.

Check to determine the level of communication a forwarder has before choosing them for your importation.

8) Licenses and membership

To ensure that you are dealing with a legit forwarder, you need to inquire about their licenses.

These are the permits a freight forwarder is given by the government to enable them to carry out their business.

9) A legit forwarder will be willing to show you these documents.

Another area you can check on is the membership of a forwarder to the internationally recognized body such as FIAT.

One thing for sure is that having such membership indicates a high-quality service delivery.

You are therefore at