This guide will take you through the machine shipping from China process.

It’s starts by helping you identify the machine, evaluate costs, choose Incoterms to actual shipping process.

By the end of this guide, you can easily ship any machine from China.

Keep reading.

Identify the Machine to Import from China

The machine manufacturers in China have invested in technology, human capital, and general capacity building.

This makes it easy for many importers to procure machinery from China.

Even so, it is vital to confirm the type of machinery you’re seeking to import from China.

You must identify your area of specialization.

Picking the wrong machine is a complete waste of resources and time.

Where possible, you can obtain product information, test reports, and descriptive literature.

It could be pharmaceutical, food processing, milling packaging, packaging, and home improvement, among others.

Capsule filling machine

It is the only way of ensuring you get equipment, which meets your demands.

Some of the common machines you can import from this country include the following;

• Agriculture/food production machines
• Compressors
• Welding machines
• Engines
• Packaging and printing machinery
• 3D printers
• Lathe machines
• Pharmaceutical machines
• Roll forming machines
• Refrigerator and air conditioner
• Turbines
• Brewery equipment
• Washing machine
• Injection molding machines
• Industrial sewing machines
• Milling machines
• Wheel loaders
• Floor care machines
• Labeling machines
• Vending machines
• CNC machines
• Laser cutting machines

Other than the machines, you can as well find different components and accessories for the same.

It is vital since it enhances efficiency in the overall operation.

Find a Machine Supplier in China

It is arguably the most critical aspect of importing machinery from China.

Finding the supplier is what determines whether or not your efforts, resources, and time will be worthwhile.

You must do thorough background research of your preferred suppliers.

You must delve into details to identify various elements revolving around their modus operandi.

You can find a supplier by searching online.

Most of them have webpages, which you can easily access and asses on the internet.

You can as well choose to visit the warehouse physically.

It will enable you to find and negotiate with the supplier on the ground without involving third party.

Most machinery suppliers are located in the eastern provinces of China.

If you’d wish to visit them, you can fly to Shanghai and connect the provincial cities with a high-speed train.

If you’re unfamiliar with the exercise, it would be ideal to hire services of a sourcing agent.

It is the best approach to consider, especially if you do not understand the dynamics of this trade.

If you are looking for a reliable and reputable machine sourcing agent in China, you may consider Tj chinafreight.

Upon finding your preferred one, you will agree on various basis regarding the payment methods and suitable incoterms.

It then allows you to initiate the buying process, which eventually leads to shipping and delivery of the machine.

Know the Location of the Machine

While finding the supplier, it is imperative also to know the exact location of the machine.

The manufacturers are spread in various regions of the country.

You thus need to ensure you determine where the warehouse is situated when buying the machinery.

It enhances efficiency, particularly when you are visiting the place physically.

It also helps to organize various logistics, especially for inland transportation.

While determining the location of machinery also figure out whether or not it is acceptable in your country.

Ensure your Country Permits the Importation of the Machine from China

Some governments have banned the importation of certain equipment on various grounds.

Before importing any type of machine from China, establish whether or not it is acceptable in your country.

As an importer, it’s your responsibility to ensure the machinery conforms to the specific rules and regulations.

Transporting excavator for shipping

The machines you are importing must also exhibit compliance with the safety and health code requirements.

Compliance with local machinery regulations is binding.

Importing machinery, which violates restrictions, might culminate in a costly and inconvenient affair.

You’ll end up paying hefty fines and penalties.

In some instances, importing non-compliant machinery often results in seizure of the units by customs authorities.

At times, the equipment may face a forced recall and probably destroyed.

Also, make sure the machine meets the required mechanical and electrical quality standards a country or market has set for the units.

For instance, the European Union has a CE Machinery Directive (MD), applicable to any type of equipment manufactured in the EU region or imported to the region.

The machinery must also be compliant to the mechanical and electrical regulations.

Also, the supplier must provide a declaration of conformity and technical certification.

In the US, ASTM is the commonly used standard for most imported machinery.

Different ASTM standards apply to different types of product units.

Additionally, the machine you are importing can as well be subjected to other consensus standards administered by various organizations.

Such standards include UL, ANSI, RIA, and ISA, among others.

Nevertheless, in Australia and New Zealand, imported machinery is not necessarily regulated by a uniform set of standards.

Evens so, various directives apply to different types of product units.

Some of the common standards, however, include AS/NZS and ERAC Equipment Certification System, among others.

Most countries, in general, accept machinery, which complies with American and European standards.

Some of the common machinery quality standards include ISO, CE, SGS, RoHS, and HQTS, among others.

The compliance rates in some industries can be as low as 5%.

Therefore, you must understand the directive and standards relevant to the market you are importing to.

Choose Mode of Machine Shipping from China

In essence, the meticulousness helps to make sure the machine stays safe and in right position during transportation.

This prevents it from possibility of damaging during the transit process.

When importing machinery from China, there are three major modes of transport you may want to consider.

They include the following;

· Sea Freight from China

It involves using water vessels to ship the machinery from loading port in China to the destination port in your country.

Upon clearance, the machinery is packed in containers then loaded into the sea vessels.

You can opt for an LCL or FCL container depending on the size and quantity of the machinery.

You can as well choose either based on your budget and urgency for the shipment delivery.

The choice for an ideal sea freight carrier from China depends on numerous factors.

You need to consider whether or not it plies your route.

You must also consider the overall cost for the carrier before settling on one.

Some of the popular sea freight carriers you’d need to consider for this service include the following;

COSCO Shipping Line

• COSCO
• Evergreen Line
• Yang Ming Marine Transport
• Ocean Network Express
• CMA- CGM
• Mediterranean Shipping Company
• APM-Maersk
• Hapag-Lloyd

Sea freight is comparatively cheaper than any other mode of machine shipping you may think of.

Secondly, this shipping mode allows you to carry bulk items conveniently. Most machines are designed to be bulky or come in numerous pieces and accessories.

It is thus imperative to consider sea freight since it guarantees safer and convenient shipping for any quantity, size, or type of machine.

Even so, it is a bit slow, and in some cases, it can take up to about 60 days to reach the destination port.

It is thus essential to always work with a reliable schedule to prevent a last-minute rush.

Also, sea freight needs a competent freight forwarder to enhance efficiency of the entire process.

· Air Freight from China

China southern cargo

It merely entails use of cargo planes to transport machinery from China to the country of destination.

These airlines have a subsidiary entirely dedicated for transporting cargo by air.

Airfreight is arguably the fastest mode you can utilize for machine shipping.

Upon clearance of the unit, it is transported to the airport via trucking then loaded to the cargo plane.

Several cargo carriers provide air freight services for shipping different types of machines.

Some of the popular ones you can use to ship equipment from China include the following;

• China Southern Airlines
• British Airways
• Air China Cargo
• Qatar Airways
• Lufthansa
• American Airlines
• Singapore Airlines
• Xiamen Air
• Air Cargo Global
• Qantas Airlines
• Cathay Pacific
• Delta Airlines

Some of the aspects to look into when choosing air freight carrier include convenience, cost, time-taken, and specific routes they ply.

One advantage of using air freight is swiftness.

You get your consignment within the shortest time possible.

In some instances, you can receive the units within hours, depending on your destination.

This is vital, especially if you have a tight deadline, which you have to meet.

It is also a safer option to consider for shipping machines.

However, air freight for machine shipping never comes cheaply.

It is an expensive option to consider, particularly if your destination is a bit far from China.

Airfreight is often charged based on the weight of the consignment.

Machines are typically, heavy and it thus means you’ll have to spend a significant amount of money.

The second shortcoming of this machine shipping mode is space limitation.

Ideally, the size and quantity of machines you are shipping is limited to availability of air craft’s space.

The bottom line is if you have a flexible budget and in need of the machines urgently, you may consider air freight.

But ideally, it is not necessarily the best mode for shipping machines

· Rail Freight from China

It involves using a cargo train to transport machines from China to the destination country.

Rail freight is also reasonably affordable compared to air freight.

However, one of its limitations is that it is restricted to specific regions.

For instance, the Silk train route covers specific countries between China and Europe.

The other shortcoming of rail freight is it crisscrosses different countries’ borders.

Every country has its rules and regulations regarding imports and exports.

Some countries where the train transverses may not approve the machines you are importing due to various directives, rules, and restrictions.

The bottom line is there is flexibility when it comes to finding the ideal shipping modes for machines from China.

Importantly, is to determine the most efficient method, which meets your demands.

In most instances, though, sea freight is seemingly the perfect choice for machine shipping from China.

Know the Airport/Port of Departure and Airport/Port of Destination

Machine shipping involves transportation of the units to the relevant airport or port of departure.

It also entails transporting the machinery from the airport or port of destination to the buyers’ factory or warehouse.

These are usually referred to as inland transportation.

It is imperative to know these two types of ports.

In China, you can choose to use different airports and sea ports, depending on the location of your supplier.

For machinery, ports and airports attached to cities in eastern provinces would suffice.

More than 50% of China’s machinery exports come from cities in the eastern provinces of Jiangsu, Shandong, and Zhejiang.

Some of the major airports of departure in China you may consider using include,

• Shanghai Pudong International Airport
• Hangzhou Xiaoshan International Airport
• Shenyang Taoxian International Airport
• Shanghai Hongqiao International Airport
• Dalian Zhoushuizi International Airport
• Ningbo Lishe International Airport
• Wenzhou Longwan International Airport
• Jinan Yaoqiang International Airport
• Qingdao Liuting International Airport
• Sunan Shuofang International Airport
• Yancheng Nanyang International Airport
• Yantai Penglai International Airport

The common sea ports of departure you are likely to use for machine shipping in China include the following;

• Port of Weihai
• Port of Suzhou
• Port of Shanghai
• Yangshan Port
• Port of Yantai
• Port of Shenzhen
• Port of Guangzhou
• Port of Ningbo-Zhoushan
• Qingdao Port
• Qingdao Qianwan Container Terminal

The specific choice is subject to various regulations and government directives regarding machinery exports.

In essence, this knowledge helps in reducing transportation costs.

Machines are typically, heavy and you’ll need to pay more for longer distances.

But the airport or port of destination would entirely depend on several factors.

For example, your government directive for such imports and distance from your warehouse, processing plant, or factory.

On the other hand, sea port or airport of destination is entirely dependent on your preference and your government directives.

Some countries must use a single airport or sea port for all imports.

If otherwise, you may as well consider checking with your customs department to determine the best one.

Knowing the airport and sea port of both ends helps in cutting costs and unnecessary inconveniences significantly.

Calculate Cost of Machine Shipping from China

If you understand the tenets of machine shipping, you can project a rough estimate of the total cost.

Some of the elements, which you need to figure out when calculating cost of machine shipping include these;

1. Tips for Reducing Cost of China Heavy Machinery Shipping

You have to know how to cut costs when shipping heavy machinery.

You may consider the following;

• Pick a regional carrier
• Negotiate with different carriers to determine the cost-effective option
• Use online shipping services where applicable
• Ensure your suppliers are using your shipping account number
• Obtain an insurance cover for the heavy machinery shipment
• Invest in a prepaid shipping system
• Use the service of a reliable shipping agent

2. Choose Appropriate Incoterms for Machine Shipping from China

For machinery, you have to be particular when it comes to choice of incoterms you are using.

It plays a significant role in determining the overall cost of shipping.

You must negotiate with the supplier to determine the feasible incoterm for shipping heavy machinery.

Some of the ideal options include the following;

• Free on Board (FOB)
• Cost Insurance Freight (CIF)
• Ex Works (EXW)
• Delivered At Terminal (DAT)
• Delivered At Place (DAP)

To reduce shipping costs, it is advisable to order on FOB terms from your supplier and DAP shipment from your forwarder.

Where possible, avoid using CIF terms.

It entails several hidden charges, which in the long run, tend to inflate the overall landed cost.

3. Calculate Duty/Taxes during Machine Shipping from China

Duty or taxes for machine shipping vary from one country to another.

You have to know the category of the machinery you are importing to calculate duty.

The customs authority in every country determines evaluation of taxes and duty for machinery.

Duty is determined as a percentage of the customs value of the product unit.

4. Know the Cost of the Mode of Shipping

Each shipping mode for machine shipment is priced differently.

The choice is always dependent on various variables.

However, for heavy machinery, sea freight is relatively cost-effective.

Find and compare rates from different carriers before settling on one.

The cost of, course will vary depending on the port of destination from the port of loading in China.

5. Factor in Logistics Cost during Machine Shipping from China

Logistics costs primarily involve the charges for other special services in machine shipping.

Lift-gate and inland transportation form the major expenses of logistics from the warehouse to port of loading.

On the other end, loading and trucking of the consignment to supplier’s warehouse also form logistic expenses.

Ideally, you have to factor in all these plus other minor expenses involved in the process.

It enables you to determine the approximate cost for machine shipping.

6. Calculate Landed Cost in China Heavy Machinery Shipping

Landed cost is generally the total price of the shipment once it arrives at the importer’s warehouse or doorstep.

Landed cost, in other words, is the actual amount of money the importer spends to acquire the machinery to their warehouse.

It gives you the final figure of the amount it cost you to import the machinery from China.

How Freight Forwarder Help Reduce Cost of Machine Shipping from China

In general, the entire machine shipping process can be a costly exercise.

A freight forwarding agent can help you to cut on the overall cost in the following ways;

• Preventing delays and detention of shipments

There is no shipment, which is immune to delays. Several aspects often result in delays of a consignment.

However, as normal as it may sound, the worst bit arises from the chargeable fees for goods after Last Free Day (LFD).

A freight forwarder is more likely to hasten the process and prevent the consignment from delaying beyond deadline.

They monitor the progress and turn of events as they keep their eyes on the deadline date.

· Providing more Affordable Shipping Solutions

A freight forwarder like Tj chinafreight deals with hundreds of shipping carriers.

It becomes easy for the agent to suggest and provide a relatively cheap carrier if you are on a tight budget.

In a great way, it helps in reducing cost, which possibly you wouldn’t have foreseen.

· Facilitating Advance Customs Clearance

A freight forwarder knows how to deal with all the demands at the customs.

It will save you time and resources moving from one office to another, trying to clear with the customs department.

· Determining the Right Container

A freight forwarder will assess the size of the cargo and suggest the right type of container, which suits it.

Container sizes usually vary, so is the cost.

It will allow you to save on cost and time as well, depending on the quantity of your shipment.

· Facilitating Special Services

Special services in machine shipping include lift-gate, inland pick-up, and delivery, as well as limited access, among others.

These services can be relatively expensive since you’ll possibly be dealing with independent providers of the same.

A freight forwarder often works with such service providers quite often.

It thus becomes easy to seek, find, and negotiate with some of the best ones at affordable rates.

Conducting Factory Acceptance Test (FAT) for the Machine

The ideal way to conduct a FAT for the machine is by performing an on-site quality inspection.

You can choose to do it yourself or hire an inspecting agent based in China.

While performing FAT, you should never limit it to a simple component checklist and visual control.

Ensure you involve actual functional testing.

If the minor defects and functional errors are detected, the factory workers can resolve them immediately.

Functionality inspection is a significant part when importing machines from China.

Always verify the machine is fully functional.

Also, ensure it is compliant with your quality demands before shipping.

In China, it is almost impossible to return defective items.

The Chinese customs authority will hardly allow them to get back to the country.

And in a few instances, they agree, a refund from the supplier is never guaranteed.

The best would be to revamp and re-ship it to you after paying all the relevant costs.

Documents for Machine Shipping from China

Machine shipping documents from China are quite a number.

However, in some instances, they tend to vary depending on different policies for different countries.

Shipping document

Several nations also have wide-ranging bilateral agreements with China as far as importation of machinery is concerned.

In most cases, this leads to exemptions in terms of paperwork requirements for machine shipping.

Nonetheless, the standard documents you must always have in this case, include the following;

• Commercial invoice
• Bill of lading
• Packing list
• Bill of entry
• Insurance certificate
• Technical write-up
• Test report
• Import license
• Country of origin certificate

Understanding and Evaluating Liability Limits for Machine Shipping from China

Liability limits refer to a concept, which allows a carrier to limit the liability for claims.

The liability claims are limited up to a specific sum irrespective of the actual monetary value of the claim.

Every machine shipment has limited liability coverage.

The carrier determines this amount and it depends on the type of machinery you are shipping.

In liability limitation for machine shipping, the carrier may be liable in principal.

However, the extent of its liability is reduced by this limitation.

Consider Safe Mode of Packaging for Machine Shipping from China

It is necessary to ensure your machinery is sufficiently packaged and wrapped before and during shipping.

It helps in protecting the unit from a dusty factory floor or damp warehouse.

Most suppliers tend to use substandard export packaging materials.

So you have to ensure your cargo is protected using the following checklist;

• Five layers of inner cartons
• Five layers of outer cartons
• Plastic wrapping on the outer carton
• Pallets
• Printed freight remark on the outer carton

At this point, the supplier should have clear and explicit packaging specifications.

Never let any chance for their interpretation.

Other than export packaging for protection, you also need to take into account the regulations safeguarding the same.

Also, remember to consider the labeling aspect during packaging.

It comes in handy when the machine you’re shipping shares container space with cargo from other buyers.

You must also confirm the various shipping regulations applicable in your market and product unit.

Book Vessel/Space for Heavy Machinery Shipping from China

Ideally, the best mode of shipping machinery is sea freight considering they are bulky and heavy.

Whenever you’re shipping machinery, you have to ensure you book a vessel for the same.

Booking a vessel should be done in advance, especially if you are going for an LCL.

Heavy machinery is always treated as special hence the need for early booking.

It enables the carrier to preserve enough space for the shipment.

Several consignees are required for LCL; hence may take longer to book it.

If the machinery exceeds 12 cubic meters, it would be ideal to consider booking an FCL.

It is even cost-effective to go for this option.

Loading Machine Ready for Shipping from China

Loading container at the port

You can agree with the supplier to facilitate transportation of the machine to airport or sea port of loading.

Alternatively, you can task your shipping agent with this responsibility.

Once the consignment arrives at the port of loading, all the clearance formalities are undertaken.

The Chinese customs authority ensures details on the export documents match the content of the cargo.

Fortunately, you do not necessarily need to pay export taxes when importing from China.

Even so, other costs related to export clearance documents are chargeable at varying rates.

The consignment is loaded to the identified vessel as a way of preparing it for transit.

After loading, the consignment may take a few days awaiting the vessel to load cargo from other buyers.

Track Cargo During Machine Shipping from China

It is suitable to seek tracking assistance from independent service providers.

Machine shipping ordinarily takes time.

It is always appropriate to know the status of your cargo upon leaving the port of loading.

On the contrary, small businesses rarely deal directly with shipping lines.

Instead, it is outsourced from a freight forwarder, who seeks an ideal shipping line.

Tracking your cargo requires you to know the shipping line transporting it, booking number, container number, or document number.

All these details are available in the Bill of Lading.

If you do not find the container number, the Bill of Lading number should suffice tracking purposes.

Receive Machine at Airport/Seaport of Destination

Once the machine arrives at the airport or sea port of destination, the next cause of action is receiving it.

You may decide to either pick it up yourself at the port of destination or ask your shipping agent to do so.

However, the shipment has to go through the routine customs clearance procedures at the port of destination.

The clearance process for machinery is quite thorough.

The verifications are meticulous to ensure the machinery meets all the required quality, safety, and health standards.

You’ll also need to pay the import duty accordingly for customs clearance.

Transport Machine to Warehouse

The machine is loaded on a truck from the sea port or airport to your warehouse.

You can decide to pick it up yourself or seek the services of a shipping agent to coordinate transportation to your warehouse.

The cargo is transported and arrives in your warehouse in a specific location, as instructed.

You can then have your team to unload it from the truck.

Also, your team can inspect and test it to ensure it is functioning appropriately.

Moreover, you can assemble the machine if at all, it was imported while dismantled.

Conclusion

At Tj chinafreight, we offer an all-in-one machine shipping solution.

We assist you in seamless and effortless shipping of the machine from the supplier’s warehouse floor to your precise location.

Feel free to contact us for any machine shipping needs from China to any country in the world.

Before you import from China, you need an inspection certificate.

Without it, some countries will not allow products within their jurisdictions.

Below are critical aspects you must know about inspection certificates.

What is an Inspection Certificate?

An inspection certificate refers to a trade document that certifies the conformity of goods to terms stated in a sales contract.

It ensures that the quality, quantity, import eligibility, price of goods for customs purposes, and tariff classifications are appropriately met.

An inspection certificate is mainly issued by an inspection company and does not apply to all types of goods.

Some of the goods that might need an inspection certificate include perishable items and industrial equipment among others.

Sample of inspection certificate

What is the Importance of Inspection Certificate in Import-Export Business?

An inspection certificate otherwise referred to as pre-shipment inspection certificate is important in the import-export business in the sense that;

• Guarantees quality of goods – All goods are thoroughly inspected to meet the desired quality expected not only by the importer but also by the consumer.
• Ensures that the quantity of the goods is as stated in the sales contract.
• An inspection certificate serves as a piece of evidence for any future claims by a 3rd party.
• Reduces risks associated with imports and exports such as frauds.
• An inspection certificate prevents the use of fake transport documents such as the Bill of lading.

Who Issues Certificate of Inspection when Importing from China?

An inspection certificate is issued by a general inspection company. Some of the inspection companies that issue inspection certificates in China include;

• The General Administration of Quality Supervisions, Inspections and Quarantine of P.R.C (AQSIQ)
• China Council for the Promotion of International Trade (CCPIT)

What Details should Inspection Certificate have?

Some of the contents that an inspection certificate has are not limited to;

• Date of issue
• Date of inspection
• Place of inspection
• Applicant contact details
• The country of origin
• The description of the goods
• Number and date of the pro forma invoice
• The insurance policy number
• Number of packages
• The number and date of the bill of lading
• The gross weight
• Port of discharge
• Contact details of the supplier
• The code number of the custom tariff
• Type of packing
• Place of issue
• The name and signature of the authorized person

How do you Know the Authenticity of Inspection Certificate?

Before purchasing your products, making sure that they are certified is a key factor.

However, when importing from China, you should beware of fake certificates.

This includes fake inspection certificates.

For you to authenticate your inspection certificate here are some tips you might consider;

A real certificate will be issued in PDF format.

• Any other certificate issued as .doc, .jpeg, .png, or scanned document should be an alarming factor.
• Do your research – By this, I mean contact your inspection company and request to verify the certificate from their online database. Note; not all companies will agree to participate in this. Therefore it’s also crucial to wisely choose the inspection company you are working with.
• Alternatively, you can easily do your research on Google and confirm if your inspection company is certified.

As the buyer, most of the responsibility is inclined to you.

Therefore, make sure that you have the right documents to avoid any risks afterward.

What is the need of Pre-shipment Inspection?

Pre-shipment inspection refers to inspecting goods before the actual shipment begins.

It confirms that the goods in question have met the terms as stated in the sales contract.

Here are some reasons why pre-shipment inspection might be of great importance to you;

• A pre-shipment inspection confirms that the products are in good condition and without any malfunctions.
• Ensures that your goods have met the expected quality as well as quantity.
• A pre-shipment inspection also issues reports for billing as well as import.
• Your product safety should be one of the most important factors to consider. A pre-shipment inspection will ensure that your goods have met the required safety standards for the market.

What Types of Inspection do you need when Importing from China?

When importing from China, there are several inspections that you need to conduct.

Investing some little cash in the inspection procedures might save you from risks as well as inconveniences later on.

Quality and safety inspections are one of the most important types of inspections for any importer to invest in.

Here are four main types of quality inspections you will need when importing from China;

· Pre-shipment Inspection (PSI)

As the name implies, pre-shipment inspection is conducted after the production process has been completed.

· Pre-Production Inspection (PPI)

Pre-production inspection otherwise referred to as Initial Pre-production Checks is carried out before the production process commences.

The materials, as well as components used in the production of your goods, are tested to ensure that they meet your requirements.

· Container Loading Check (CLC)

Soon after your goods have been produced and loaded into containers, a container loading check will be conducted.

Its main purpose is to check that the packaging materials, barcodes as well as labeling are as per your requirements.

· During Production Check (DUPRO)

Performing early checks on your goods are important as such will prevent you from experiencing delays and other inconveniences later.

For this, you will need to perform a During Production Check (DUPRO).

As compared to other inspections, during production check inspection is carried out while goods are still in the manufacturing process.

For this to be carried out, 10% to 50% of your goods should be completed and packaged.

Components are then picked randomly and tested to ascertain if they meet your product specifications.

Is there a Specific Inspection Certificate Format for Export in China?

Yes, there is.

Inspection certificates for export in China have a specific format as they are also different from other export documents.

When should you Request for Third-Party Inspection Certificate in Import-Export Business?

SGS Inspection certificate

You can request for a third party Inspection during the production stages or before packaging of goods.

A third party inspection is carried out by an inspection company to ensure that the quality, safety as well as performance standards are complied to.

This is an ideal option if you want a thorough inspection without having to travel to China.

However, most if not all inspection companies request upfront payment.

Your inspection company will either provide you with a “pass, fail, or pending answer after conducting the inspection.

There are several third-party inspection companies in China and making use of them might save you big time from the unforeseen risks.

What is included in the Report after a Third Party Inspection?

After the inspection is finalized, the inspection company will submit a report regarding the inspection conducted.

The report should include the following;

• The number of shortcomings found in inspected components.
• The type of defects found in the inspected units
• The total amount of the finished and packed goods in the factory. This will ensure that your order quantities, as well as production timelines, are met.
• Photos of the inspected goods, test results together with any other findings
• Safety, performance, and functionality results for any on-site testing.

Third-party inspectors are there to represent you when visiting the factory and should not have any form of relationship with the staff.

Failure to this might result in integrity issues.

Is there a Validity Period for Certificate of Inspection?

Yes, there is.

The validity period of a certificate of inspection is 5 years after which you will be required to apply for a new one.

Keep in mind that you might be denied the certificate of inspection if by chance your products fail to have maintained the required standards.

Are there Countries that don’t Require a Pre-Shipment Inspection Certificate?

Yes, there are.

However, most if not all countries advocate for a pre-shipment inspection certificate.

Some of the countries that require a pre-shipment inspection certificate include;

Cambodia, Kenya, Iran, India, Indonesia, Congo (Brazzaville), Niger, Senegal, Togo, Mexico, Mauritania, Ethiopia, Kuwait, Sierra Leone, Malawi, Mali, Central African Republic, Bangladesh, Benin, Guinea, Mozambique, Cameroon and Comoros among many others.

Are all Certificate of Inspection the Same?

Not all certificates of inspection are the same.

There are different types of inspections available and therefore the tests and reports vary from one inspection to the other.

Some of these inspections include;

• Pre-production inspection
• Pre-shipment inspection
• Container Loading Supervision
• Post shipment inspection
• During production inspection

When is Inspection Certificate Issued?

An inspection certificate is issued after completion of a related inspection certifying that the goods meet the stated requirements.

In addition to that, the inspectors also take part in the signing of the inspection certificate.

Which Inspection Companies should you Hire when Importing from China?

There are several inspection companies you could choose to hire from China.

Therefore, coming up with your ideal choice might seem quite challenging.

Nevertheless, here are some inspection companies from China that you might consider;

• Quazoom
• SGS
• Bureau Veritas InSpec
• Bay Source Global
• KRT Audits
• V-Trust
• Asia Quality Focus
• InTouch Manufacturing Services
• QUIMA
• Sofeast Limited

How do you Control Quality when Importing from China?

Importing from China does not guarantee you quality products.

China is a massive manufacturing hub and you shouldn’t be surprised encountering both quality and fake products.

The existence of fake products is one of the main issues that discourage most first time importers.

Quality issues can range from;

• Substandard products
• Damaged products
• Wrong color of items
• Substandard packaging
• Cosmetic defects

To avoid falling into such, here are some ways you could control the quality when importing from China;

Quality control elemtnts

• Conduct Quality Inspection –Use quality inspecting agents to ensure that your products meet your required quality standards.
• Work with a certified and reputable manufacturer – With a certified manufacturer, you are guaranteed of quality products as compared to dealing with an uncertified manufacturer.

Most if not all reputable companies will always focus on maintaining their clients.

Therefore, to match this, they ensure that the products manufactured are of high quality as expected.

• Work with sourcing agents and freight forwarders –This mostly comes through for newbies in the import/export industry.

Sourcing agents and freight forwarders know the best manufacturers and suppliers in the market.

Therefore, working with them will not only lower risks associated with fake products but also scammers.

• Inform your manufacturer that you work with quality inspection agents –This will ensure that your manufacturer doesn’t compromise with the quality of your products.
• Purchase products under a contract –By so doing, your manufacturer will be geared towards maintaining the required quality standards without failure.
• Specify your product requirements –Never assume that the manufacturer knows what they’re doing.

Always make sure that you specify each of your requirements such as color, sizes, and materials to avoid disappointments later.

What other Document do you need alongside Inspection Certificate in Export-Import Business?

In the Export-import business, you should be prepared to have proper documentation for your goods.

Apart from an inspection certificate, other shipping documents that will be crucial are not limited to;

Import Export Documents

• Bill of lading –A bill of lading is a trade document that described the quantity, destination, and type of goods. Additionally, it is used as a shipment receipt once the goods arrive at the destination.
• Insurance Certificate –An insurance certificate confirms that the goods are protected against loss or damage. All information regarding the insurance coverage of goods is stated in the insurance certificate.
• Import/export license – These two documents confirm that your goods have been granted permission to be imported or exported into and out of a country.
• Test report – A test report approves that your goods have been tested and they meet the required standards.

How can you Solve Quality Inspection and Certification Disputes?

First, you can solve quality inspection and certification disputes by submitting the product samples to a third party.

This method shall be unbiased for both the importer and the exporter.

The third-party method could involve conducting a third party inspection or simply through mediation.

Quality inspection and certification disputes can also be solved through arbitration and litigation.

Arbitration involves the disputing parties choosing an arbitrator who will decide on their fate in a binding, unbiased, and confidential manner.

If the disputes get out of hand, another way to solve it would be through a court (Litigation).

With this method, the judge will listen to both parties and decide on the case.

What is the Cost of the Inspection Certificate in China?

You are bound to spend from $268 onwards per single man day of work.

Remember, additional costs such as transport costs might be incurred.

Therefore, the prices might fluctuate due to a couple of factors including the type of product.

A product with a complex production process would require extensive inspection and therefore you are likely to spend more.

However, if this seems out of your budget, you can choose the easy and cheaper way;

Request your supplier to send you as many photos and live videos. Also, request them to send you a product sample.

Also, when making your purchases, ensure that your risks are minimized.

Is Certificate of Conformity the same as Inspection Certificate?

Yes, it is. Both certificates are issued to certify that the goods in question meet the required terms stated on the sales contract.

Which kind of Check does a Quality Inspector do?

A quality inspector is expected to do all kinds of tests and checks on the product.

The types of tests done will vary depending on the type of product. Some of the tests include;

• Packaging test
• Drop test
• Water pressure test
• Labeling test
• Function tests
• Wear and tear tests
• Visually look for any damage or defect on the product
• Material test

Is there a Process for Arranging a Quality Inspection in China?

Yes, there is. After identifying your preferred inspection company all you have to do is inform them of your requirements.

Here are some of the important items to highlight.

• Your supplier’s or manufacturer’s contact and location details
• Description of your products. You may send them photos as well as videos for extra clarification.
• Describe the quantities that are being produced.
• Description of the packaging and labeling
• Outline your quality standards.

While doing this, it’s advisable to provide a physical sample as it will enhance the accuracy of the entire process.

At Tj chinafreight, we will help you meet your quality requirements when importing from China.

Contact us today for faster quality verification and issuance of inspection certificate.

In today’s guide, you’re going to learn about yet another important item in import and export documents tool kit – export letter of credit.

So, if you intend to use export letter of credit, read this guide so that you don’t make any mistake.

What is an Export Letter of Credit?

It is a financial instrument, which a bank issues to represent its commitment on importer’s behalf.

It guarantees payment will be made to the exporter provided the specified terms and conditions are met.

Ordinarily, the specified conditions on export letter of credit are evidenced by presentation of particular documents.

The issuing bank relies on the creditworthiness of the importer to issue export letter of credit.

Sample letter of credit

What is the Purpose of an Export Letter of Credit?

Its purpose is to guarantee the exporter regarding the payment for goods the importer is purchasing.

It acts as a conditional guarantee, which the importer’s bank offers to the exporter upon purchasing goods.

It acts as a contractual payment agreement between the importer’s bank and exporter to facilitate shipment of goods upon purchase.

It also serves to protect the importer.

The documents needed for triggering the payment provide evidence that products have been shipped accordingly.

How does an Import Letter of Credit compare to an Export Letter of Credit?

There is a thin line between import and export letters of credit.

Ideally, the importer’s bank issues import letter of credit with the supplier as the beneficiary.

On the other hand, once the exporter’s bank receives the same letter of credit, it becomes an export letter of credit.

In simple words, an import letter of credit is issued by the importer’s bank, whereas the exporter’s bank receives an export letter of credit.

However, the terms and conditions in the import letter of credit are legally binding.

Comparatively, the terms and conditions in export letters of credit are more flexible.

Import letter of credit tends to increase creditworthiness of the importer.

On the other hand, export letter of credit seemingly enhances cash flow of the exporter.

Materially, both import and export letters of credit are similar.

They only vary in terms of perspective.

What are the Advantages of Export Letter of Credit Financing?

It offers a wide range of benefits both to the importer and exporter.

Some of the advantages include the following;

1. Risk mitigation – It reduces risks of non-payment to almost zero. The exporter is wholly guaranteed of the payment provided they meet the demands of the letter.
2. Flexible terms and conditions – It provides room for negotiating the stipulated terms and conditions. It can be tailored to meet the exporter’s requirements. This makes it easy to facilitate the purchase and shipping of particular products.
3. Enhances exporter’s cash flow – Ordinarily, the more payment the exporter receives, the higher the cash flow they experience. This mode credits payment on exporter’s account, thus improving their cash flow.
4. Upfront payment – It allows the exporter to receive payment way ahead before the consignment arrives to the buyer. The exporter is guaranteed the payment prior to shipment.
5. Increases importer’s creditworthiness – It enhances the solvency of the importer, thus making it easy to obtain such facilities for future business financing.
6. It offers access to post-shipment non-recourse funding and reduces the need for a credit control instrument.

Is an Export Letter of Credit (L/C) the same as a Bank Guarantee (BG)?

Yes.

To some extent, in regards to business application and instilling confidence in the transaction and participating parties.

Even so, they vary slightly in regards to the terms and conditions on which they apply. Here are some of the differences;

An export letter of credit is more or less like a commitment a bank takes to pay the beneficiary once particular criteria are met.

A bank guarantee is a bank’s commitment to honor the beneficiary’s payment should the opposing party fail to fulfill their contractual compulsions.

Export letter of credit protects both parties in the transaction but leans more towards the exporter.

Bank Guarantee, on the other hand, covers both parties in the sale but favors the importer more.

Export letter of credit is commonly used with merchants involved in the business of imports and exports of goods.

Bank guarantee, however, is often used by contractors who bid on larger projects like infrastructure.

Export letter of credit reduces the risk involved by confirming a transaction goes ahead.

Bank guarantee, on the other hand, mitigates incurred loss should the transaction fail to go to plan.

Export letter of credit is comparatively affordable than a bank guarantee.

BG is seemingly costly since it protects both parties and covers wide-ranging high-value transactions.

What Documents do you need to Open an Export Letter of Credit?

In an export L/C, the buyer must request different types of documents from the seller to facilitate the entire process.

Some of these documents include the following;

1. Commercial invoice – It is necessary to demonstrate proof of the value of order.
2. Packing list – It shows the items packed in the shipment
3. Bill of lading – It shows proof of shipment
4. Certificate of origin – It acts as proof of origin of the items you are purchasing.
5. Health certificate – It is necessary to prove the goods meet stipulated health and sanitation requirements.
6. Inspection certificate – It proves the product conforms to the required quality standards.
7. Insurance certificate – It shows the shipment is covered in case of any risks.
8. Bill of Exchange – It is a negotiable tool issued to the bank to facilitate payment.

Primarily, the documents required for opening and processing an export letter of credit fall into various categories.

The categories include; commercial, financial, shipping insurance, and customs documents.

How does an Export Letter of Credit Work?

The process starts when the importer requests for the export letter of credit for financier, creditor, or bank.

Here, the buyer submits all the necessary documents required for opening the Export L/C.

The importer arranges for the issuing bank to open a letter of credit in favor of the exporter.

Also, the importer’s bank issuing the instrument then transmits the L/C to the exporter’s nominated bank.

Besides, the exporter then releases the items and forward them to the freight forwarder.

Next, the goods are dispatched for shipping.

The exporter or dispatcher then take the documents to the nominated bank.

Then, the bank confirms the documents to ensure compliance with the L/C and collects payment from the issuing bank.

Next, the importer’s account is then debited accordingly.

The importer’s bank then releases the documents to the importer to enable him/her to claim the goods from the shipper

It is the same documents that the importer also uses to facilitate customs clearance.

How Secure is Letter of Credit as a Payment Method in the Export Business?

It is a highly secure payment method, which guarantees safety and can be used for almost any international business transaction.

It safeguards the exporter or seller, which is critical, especially in terms of reducing non-payment risks.

The buyer can never cancel or alter the terms and conditions of export L/C without the consent of the exporter.

However, this payment method only becomes risky should the issuing bank fail to credit the payment to the exporter’s bank account.

This often arises should the exporter fail to meet all the set-out conditions on the export L/C.

Even so, it doesn’t imply the seller will never get paid at all.

It only leads to delayed payment or non-payment until the conditions are met.

Letter or credit

What is a Documentary Letter of Credit?

It refers to an arrangement in international trade in which the importer’s bank facilitates exporter’s payment for goods upon receipt of relevant documents.

The buyer’s bank must receive documents showing the commodities have been dispatched and shipped.

It is the responsibility of the importer’s bank to pay the seller according to the terms of a letter of credit.

This only happens upon provision of relevant documents by the seller, which must meet the conditions of L/C.

It should also confirm the shipment of goods within a specific time-frame.

Who are the Main Parties to an Export Letter of Credit?

Letter of credit has several parties with different undertakings, which include the following;

The opener – this refers to the importer, who is responsible for opening the export L/C upon request. You can also refer to it as the buyer.

The issuer – This is the institution where the buyer opens the request for export L/C. It is the bank in the importer’s country, which issues the letter of credit.

The beneficiary – Also referred to as the seller or exporter. The export L/C is issued in favor of the beneficiary.

Confirming bank – This is the primary party to the credit, which assumes all the obligations of the bank issuing export L/C.

Notifying bank – It is the party, which alerts the beneficiary regarding credit, which has been opened to their favor. This player advises the beneficiary accordingly upon confirmation of the export L/C.

The paying bank – It is the ultimate party responsible for crediting the amount into the beneficiary’s account. In many instances, the paying bank is usually the confirming and notifying bank.

The negotiating bank – It is the party, which accepts or pays the draft to the beneficiary. The seller is obliged to go to his preferred bank, present the draft and relevant documents under the credit.

It happens where there is no specified paying bank in the export letter of credit.

What is the Difference Between an Export Letter of Credit and a Loan?

Export letter of credit is a letter from a bank or financier guaranteeing to pay the seller on behalf of the buyer for goods purchased.

It is submitted to the seller upon verification that commodities have been shipped.

A loan refers to a sum amount of money borrowed from a third party to facilitate payment of purchased goods or products.

The transaction for a loan is usually directly between the importer and the exporter.

A loan facility ordinarily accrues interest, unlike the export letter of credit facility, which is usually on fixed terms.

How much Does it Cost to Acquire a Letter of Credit?

It is wholly dependent on the fee policy of a specific bank you are requesting this facility from.

Different banks charge different rates for issuing the export letter of credit.

Some factors, which determine the chargeable rates, include importer’s credit rating, export letter of credit margin, and tenor, among others.

Even so, most banks often charge a range of about 0.25 to 2% based on varying deliberations.

Who Pays for the Cost of a Letter of Credit?

It depends on different aspects surrounding the customs and practices of jurisdictions where export L/C is issued and advised.

It is also dependent on the sales contract binding the applicant and the beneficiary.

In most instances, though, both the seller and the buyer incur some cost related to opening and completing the export L/C.

The entire process is negotiable.

It makes it easier to find common ground on who pays or how to share the cost of letter of credit.

The buyer pays opening, advising, and related bank charges.

Seller, on the other hand, pays for negotiation, amendment, discrepancy, and completion fees of the L/C.

Nonetheless, the buyer tends to incur more costs compared to the seller.

How Long does it take for a Letter of Credit to Open?

It depends on the specific bank, which is issuing the export letter of credit.

However, the duration is pegged on various prevailing and underlying issues between the bank and the applicant.

The applicant’s L/C limit and bank’s approvals from the checker, as well as other authorized signatories, determine how long it takes.

However, if all factors remain constant, the export letter of credit should open within a few minutes to two days upon request.

At what Point is an Export Letter of Credit considered Revolving?

When the export L/C recurs every month for a similar transaction in a predetermined period.

The value of the L/C remains the same, but you can use it for different transactions over some time.

It is when the amount of money you can withdraw is reinstated and becomes available until the agreed time frame.

The duration and maximum value for the credit can revolve in is often outlined beforehand.

Moreover, the revolving credit also captures the replenishment clause and maximum amount of credit utilization.

Is an Export Letter of Credit the same as an Export Credit Insurance?

Not at all!

Export credit insurance covers the seller from the risks associated with non-payment by a foreign buyer.

It mitigates the risks arising from non-payment when doing international business.

This facility gives the exporter a conditional assurance regarding payment of the commodities in case the foreign buyer forfeit.

It covers risks such as insolvency and bankruptcy of the buyer.

On the other hand, the export letter of credit provides conditional assurance to the exporter regarding payment of the commodities by the buyer.

It gives the seller surety of payment for goods delivered as long as the demands of the document are met.

Letter of credit

What is a Letter of Acceptance, and how Different is it from a Letter of Credit?

Letter of acceptance is a document, which confirms mutual agreement between the buyer and the seller for purchasing specified items.

The buyer lists and sends all the items with all the documents duly signed to the exporter.

The exporter confirms the deal and terms and conditions in form of documentary evidence.

It is different from the export letter of credit since it does not necessarily guarantee payment of the commodities purchased.

It only demonstrates the exporter’s acknowledgment and comprehension of the buyer’s conditions, including mode of payment.

What are the most Common Discrepancies in an Export Letter of Credit Document?

Discrepancies in an export letter of credit refer to errors or defects usually arising as a result of human err or general paperwork mismatch.

Some of the usual discrepancies you are likely to encounter include;

1. Inconsistent documents – All the documents submitted for opening an export letter of credit must be consistent. Any inconsistency identified at any stage of processing this document is considered a discrepancy.
2. Expiry of letter of credit – It happens when there is a delay in presentation of the relevant documents.
3. Insufficient documents – All the required documents for opening and completing a letter of credit should be submitted accordingly.
4. Insufficient insurance coverage
5. Inconsistency in description of goods or it is stated differently from the letter of credit
6. Unauthorized charges on the invoice contrary to the letter of credit.
7. Unsigned invoice or it hardly specifies the terms of shipment as quoted in the export letter of credit

How can you Reduce the Risks Associated with Export Letter of Credit?

• As an exporter, ensure to consult with the bank before the buyer requests for export letter of credit.
• Assess all rectify all the elements leading to discrepancy opportunities to prevent delay or non-payment
• Establish that all the terms of letter of credit can be met within the specified time limits.
• Determine whether or not the export letter of credit is necessary for the transaction.
• Negotiate with the importer and agree on detailed terms and conditions to include in the letter of credit.
• Make sure all the documents are consistent with the terms and demands of the export letter of credit.

What is the Difference Between a Confirmed and Unconfirmed Letter of Credit?

Confirmed is the type, which a second obligation is added to the export L/C by a different bank.

Unconfirmed is the type, which only carries the obligation of the issuing bank to guarantee paperwork is in order.

In a way, this helps to guarantee payment to the exporter.

Is a Sales Agreement Part of an Export Letter of Credit?

Not at all!

A sales agreement is a contract between the buyer and the seller regarding the purchase of commodities.

It may also capture other details such as mode of payment.

If need be, you may include it in the documents for opening an export letter of credit, but it is not part of it.

When does a Seller get Paid when Using an Export Letter of Credit?

Once there is a confirmation that the commodities have been shipped, the seller can initiate the process of completing the export letter of credit.

Thus the seller is legible for payment upon confirmation of shipping the items and meeting other demands of the export L/C.

The payment can be within a few minutes or after a few days once the issuer confirms the seller has met the stipulated conditions.

Can you Transfer an Export Letter of Credit?

Absolutely correct!

You can request for transfer of export letter of credit.

It creates a secondary beneficiary, which allows you to transfer part or all of the credit to.

In this case, you become the primary beneficiary given you are the first party to accept the transferable letter of credit from the bank.

Can you Amend an Export Letter of Credit?

Absolutely correct! You can always amend an authorized export letter of credit anytime as many times as possible.

Even so, it has to before it expires.

You only need to instruct the issuing bank on the ideal amendments you want to incorporate in the export letter of credit.

However, it is not advisable to amend it too many times since it stands chances of causing discrepancies due to inconsistent data.

And in case you have any questions regarding export letter of credit contact Tj chinafreight now.

I know you want to learn more about certificate of origin.

Or, you would like to know what it is, who issues certificates or origin.

Or maybe, you want to know why a certificate of origin is important.

If that’s the case, then read this guide since it covers everything you’re looking for about certificate of origin.

• What is a Certificate of Origin?
• Why is a Certificate of Origin Necessary?
• What Details are included in a Certificate of Origin Form?
• Which Countries need a Certificate of Origin?
• When is a Certificate of Origin Required?
• What is the Difference Between a Certificate of Title and a Certificate of Origin?
• How does C/Os Work in the Import/Export Process?
• What are the Different Types of Certificate of Origins?
• What does Preferential Origin Mean?
• Who can issue a Preferential Certificate of Origin Document?
• What are Preferential Rules of Origin?
• How do you Fill Certificate of Origin Form?
• What is a Generic Certificate of Origin?
• Who Signs a Certificate of Origin Form?
• Which Party Provides a Certificate of Origin Form?
• What are the Formats of a Certificate of Origin?
• What is an Electronic Certificate of Origin?
• Why should you Consider an Electronic Certificate of Origin?
• How do you Determine Country of Origin?
• Is Country of Origin the same as made in?
• What do you need to Apply for a Certificate of Origin?
• Should you only Apply your C/O at the Local Chamber of Commerce?
• What is the Cost of Obtaining a C/O?
• Can you get a Certified Certificate of Origin Replaced?
• What Happens if you’re Importing Goods from different Countries of Origin?
• What does a Certificate of Origin need to Comply with?
• Can a Certificate of Origin Reduce Import Duties?

What is a Certificate of Origin?

It refers to an importing document often used in international trade transactions issued by the exporter.

Normally, it authenticates the product imported or shipped was obtained, manufactured, or processed from a specific country.

Additionally, certificate of origin contains vital information regarding the item, country of export as well as destination.

It is a necessary document required for cross-border trade by many treaty agreements.

In most cases, certificate of origin is issued by the exporter or supplier and authenticated by the Chamber of Commerce.

It is also anchored by a commercial invoice, which declares the same information.

Certificate of origin

Why is a Certificate of Origin Necessary?

1. It helps in determining whether or not particular products are eligible for importing from China.
2. It helps to establish whether the goods are subject to duties and taxes or if they are exempted from the same.
3. It enables products to clear seamlessly at the customs department of the country of destination. Many customs authorities require this document to validate country of origin.
4. It sets controls management of imported products by informing importers the countries subjected to foreign quotas.
5. It determines the rate of customs duty the product is charged. The importer must always submit a copy of CO at the time of making a declaration.
6. It helps to differentiate the product from competitors and providing statistical reporting
7. It is essential in fulfilling appropriate product marking requirements. The markings must be of adequate size and clear enough.

What Details are included in a Certificate of Origin Form?

A certificate of information contains numerous details, which include the following;

• Exporter’s information including name of the company, address, and contact details
• Consignee details including name, address, and contact details
• Port of loading
• Port of discharge
• Name of the vessel and voyage number
• Departure date
• Final destination
• Letter or credit where applicable
• Certificate number
• Product details – These include description, weight, quantity, HS code, shipping marks, etc.
• Statement of country of origin of products
• Third-party details where applicable
• Name, date, and signature of the representative of authorized company

Which Countries need a Certificate of Origin?

Any country, which is involved in international trade requires a certificate of origin.

It is a requirement for any country, which imports goods manufactured in a different nation.

In other words, any country which imports goods and products from different countries requires a CO.

When is a Certificate of Origin Required?

• It is a requirement when there is a bilateral Free Trade Agreement between the exporting and importing countries. In this instance, it enables the importer to reduce or eliminate import duties pegged on the goods.
• It is also required during clearance of the imported products by the customs authority. The customs at the buyer’s country use this document to determine tariffs, duties, and taxes.
• It is required during customs clearance to determine the actual origin of the goods.

What is the Difference Between a Certificate of Title and a Certificate of Origin?

Certificate of origin refers to an affidavit or document, which accompanies the product or item.

It outlines the company, which manufactured it and denotes transfer to the importer.

CO is a critical document required for cross-border trade.

It is used in clearance at the customs to determine the payable tariffs and duties pegged on the item.

On the other hand, a certificate of title refers to a document issued to a person upon purchasing or possessing a property.

It is often issued after the property is transferred to the buyer to denote legal ownership of the same.

Certificate of title is given out locally by the respective authorities overseeing such transactions.

How does C/Os Work in the Import/Export Process?

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Ideally, there is no standard C/O or global trade.

This document is often prepared by the supplier who must have the basic information about the product and country of origin.

The exporter documents all the relevant information based on knowledge of border control requirements of importing countries.

The exporter then ensures the Certificate of Origin is notarized by the chamber of commerce of the exporting country.

Then the form is submitted to the importer or agent with the shipment.

Detailed information and requirements depend on the type of products being shipped and the specific country they are headed to.

The importer submits the C/O at the customs department of importing country.

This is alongside other import documents, including the commercial invoice and packing list, among others.

At this point, the customs official will determine all the applicable functions of the C/O and provide a conclusive report.

Mostly, it helps to reduce or eliminate customs duties payable on imported goods.

The goods are then allowed into the country subject to the report by the customs authority.

The importer must meet specific conditions where applicable before goods are cleared to get into the country.

What are the Different Types of Certificate of Origins?

Certificate of origin come in two types, which include the following;

Certificate or origin document

1) Non-Preferential

It is the most common and largely used in many cross-border trades.

It is a type of CO, which specifies the product is ineligible for lower tariffs or preferential treatment.

In other words, goods under non-preferential CO do not qualify for tariff-free treatment or lower tariffs.

Different rules are used in application of all types of non-preferential commercial policy measures.

Some of these measures include anti-dumping duties, trade statistics, government procurement, trade embargoes, and countervailing duties, etc.

This type of CO is obtained in circumstances where the goods are entirely sourced in one country.

It can also apply where two or more countries are involved in manufacturing of the product.

Even so, its origin is obtained for the country where the goods went last.

Essentially, each product has a non-preferential origin, and it can be different from its preferential origin.

2) Preferential

It refers to a certificate attesting products in a particular shipment of a particular origin under the conditions of a bilateral or multilateral free trade agreement.

It shows a product qualifies for relatively low or reduced tariffs.

It also specifies any other exemptions, which may exist in the trade agreement.

Essentially, preferential CO is conferred on products from specific countries upon fulfilling stipulated policies.

Notably, not all goods necessarily have a preferential origin.

What does Preferential Origin Mean?

It refers to products conferred from specific countries, which have met the set criteria hence allowing claiming of preferential rates of duty.

It has a connection with trade agreements, which enable members to access domestic markets at preferential tariffs.

Preferential origin sets out the minimum amount of processing or working needed on non-originating materials.

The essence is to make it possible for the resulting products to attain the originating status.

To obtain preferential origin, the products must attain the relevant conditions set in the origin protocol of concerned country.

Preferential origin provides two grounds, which a product must meet to be considered as originating;

• The products must be manufactured from components or raw materials produced in beneficiary country.
• The products must undergo a particular amount of processing in the beneficiary county.

Who can issue a Preferential Certificate of Origin Document?

It is issued by a competent authority of an exporting country appointed by a relevant body overseeing the operations of this trade.

It is considered as an effective option to undertake since they are verified by the chamber of commerce of the particular country.

In some instances, the certificate of origin can as well be issued by a supplier, manufacturer, exporter, or importer.

These are often referred to as self-issued certificates of origin and declarations of origin.

However, self-issued CO’s are often subjected to thorough scrutiny by the customs department during clearance.

At times this can lead to unprecedented delays, especially if the goods are coming from a country with unclear bilateral trade agreements.

What are Preferential Rules of Origin?

They refer to a set of criteria, which products must comply with to be considered as having originated from when exported to FTA partner.

They are policies used in determining whether or not a product is legible for preferential tariff offered under the agreement.

Preferential rules are based on HS classification, but it has to be product-specific. Negotiations for these rules is independent for each FTA.

Preferential rules of origin come in two main types, which are wholly obtained and substantial transformation.

Wholly obtained goods are products acquired entirely within the territory of an FTA party.

This is without factoring in any addition of non-originating materials.

Substantial transformation is a rule, which requires products to undergo a particular process to be considered originating from a particular country.

How do you Fill Certificate of Origin Form?

It is quite a simple exercise, which requires you to provide the specific details outlined in the document.

Even so, the information required may vary depending on the originating and destination countries.

Basically though, in filling out the document, you need to provide the name and address of both the shipper and consignee.

You must also indicate the name of the shipper or the shipping company used.

Ensure you list the numbers, marks, or identities identifiable on the outside surface of the shipment. Provide the number of units for the particular product on the form.

Also, give the full weight of the consignment and incorporate packaging in kilograms or applicable mass units. Provide a detailed description of each item.

Ensure you sign, stamp, and date the form upon filling all the relevant details accordingly.

What is a Generic Certificate of Origin?

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It refers to a non-specific form, which you can use for any country that lacks Free Trade Agreement, particularly with the USA.

It is also issued in circumstances where the goods do not qualify for FTA.

It is used for facilitating importation of goods from partners who do not have unilateral or bilateral trade agreements.

It contains exporter’s and importer’s information, description, and harmonized tariff or products and country of origin.

A local chamber of commerce must authenticate a generic certificate of origin.

It also has to be legalized by the commercial department of the consulate of the country of destination.

Who Signs a Certificate of Origin Form?

It is prerogative of the exporter to sign the certificate of origin form.

It has a provision, which allows the exporter to declare knowledge of the details provided on the form.

Additionally, the local chamber of commerce of the originating country must also append a rubber stamp on this form.

The essence is to corroborate the items are indeed originating from the country.

Which Party Provides a Certificate of Origin Form?

The shipper can choose to create their template for declaration of origin and make declaration on behalf of the company.

For non-preferential certificates, the local chamber of commerce is responsible for giving it out to the exporter.

The exporter fills out the form by providing relevant details regarding the products and country of destination.

The exporter, in this case, could be a manufacturer, supplier, or general merchant.

The chamber of commerce acts as the third party, thus responsible for verifying the shipper’s declaration.

The chamber of commerce then reviews the form and notarize it before it is submitted to the importer.

However, if it is a preferential certificate of origin, it is the Global System of Trade Preference (GSTP) that issues it.

But the country must be a member of GSTP to obtain this document through Export Inspection Council (EIC)

What are the Formats of a Certificate of Origin?

Certificate of origin is available in two major formats;

Generic format – It refers to the general format, which is non-specific and can be used in situations where goods do not qualify for FTA.

It is a simple format, which only captures the basic information of the exporter, importer, products, and country of origin.

Special format – It refers to a customized template, which captures specific information regarding the exporter, importer, products, and country of origin.

It offers detailed information relevant to the requirements of local chamber of commerce stipulations.

What is an Electronic Certificate of Origin?

It refers to a web-based certificate created and completed online.

Most chambers of commerce around the world have started adopting electronic certificates of origin in various export operations.

The exporter needs to fill all the relevant documents on the application and submit it to the chamber of commerce for approval.

Certificate or origin

Why should you Consider an Electronic Certificate of Origin?

• It increases transparency, saves time, and significant cost in the overall trading environment.
• It accelerates the speed at which the document is created, approved, and submitted to the importer for customs clearance.
• It enhances safety of trading environment hence increasing efficiency of forwarding and clearing goods from between exporting and importing countries.
• It reduces the need for paperwork, which is increasingly becoming tedious, bothersome, and frustrating.
• It enhances safety as far as keeping records for future reference is concerned.

How do you Determine Country of Origin?

Primarily, it refers to the country of production, manufacture, or growth where the product comes from.

Determining the country of origin in international trade is essential and relatively simple.

You merely need to figure out the specific country the product is wholly obtained or wholly produced from.

There is a label, which you will always find on the product indicating either or both.

For example, if the product is wholly produced in China, the label will indicate “Made in China.”

It shows the country of origin for the item is China since labor, materials, and other production factors are entirely obtained from China.

The product can be produced in China, but materials and other elements sourced from other countries.

In this case, the label can only indicate “Made in China” claim conditionally.

Nevertheless, you can also determine the country of origin if the product ships directly from beneficiary country.

Is Country of Origin the same as made in?

Not necessarily. Country of origin may vary from made in on different grounds.

For example, if the product is entirely manufactured in a country using the local labor and resources, it becomes a country of origin for the product.

Where the goods are processed in country using imported materials and sourced labor, there is a caveat.

It becomes made in the country from imported materials.

Generally, the terms depend on the FTA or duty preference programs.

What do you need to Apply for a Certificate of Origin?

You need to provide the following documents;

• A duly filled and approved affidavit
• Supplier’s corresponding commercial invoices indicating where goods are sourced from.
• A duly filled certificate of origin request form

There is also a fee, which you must pay at the chambers for stamping the certificate of origin.

The fee is usually subsidized for members but varies from one authority to the other.

Should you only Apply your C/O at the Local Chamber of Commerce?

Yes! It is highly recommended you apply for C/O at the local chamber of commerce.

It is the only officer with authority to notarize the certificate of origin and make it valid for use.

What is the Cost of Obtaining a C/O?

It varies from one country to another.

The authorities responsible for issuing the C/O usually peg small facilitation fees for the same.

Even so, the fee is usually reduced for members of the association as an incentive of becoming a member.

The bottom line is there is no standard cost for acquiring a certificate of origin.

Prevailing factors determine it.

Can you get a Certified Certificate of Origin Replaced?

Yes! In exceptional circumstances, the local chamber of commerce can accept requests for replacing a certified C/O.

However, the request is accompanied by a letter, which explains the reasons behind the wish.

What Happens if you’re Importing Goods from different Countries of Origin?

It depends largely on your country and the specific types of goods you are importing.

Some countries will require that you have a certificate of origin for every type of product you are importing.

For analytical purposes, it is recommended you record them separately.

This may require utilization of supplementary sources of information to determine countries of origin.

In some instances, you’ll need to consolidate the goods and obtain a single certificate of origin.

And this should be issued in the last country where consolidation occurred.

In essence, it is deemed the last country ought to have confirmed origin of the other products.

However, it is a requirement to get binding origin information.

This is a written document by the customs authority, confirming the origin of products.

What does a Certificate of Origin need to Comply with?

A certificate of origin documents must meet certain stipulations required by countries of destination

Even so, many nations across the world rarely put strict measures, which these documents must comply with.

The most important thing is making sure the document is in line with a strict format and content.

Additionally, some countries of destination would also demand third party approvals for the document.

Other demands for this document, however, may depend on the specific destination country.

Therefore, it is advisable to confirm with your local chamber of commerce to determine any specific requirements to adhere to.

Can a Certificate of Origin Reduce Import Duties?

Most definitely!

If you’re importing products from countries, which have bilateral or unilateral trade agreements, a C/O can eliminate or reduce import duties.

This document ostensibly, acts as proof of origin of the commodities.

Therefore, it comes in handy in determining whether or not goods are exempted from duty.

It also allows you to know whether it is eligible for preferential duty tariffs.

But this is dependent on the specific trade agreements between the country of origin and destination country.

At Tj chinafreight, we help you import from China by processing all your shipping documents.

Contact us today for questions or inquiries about import and export documents.

I know you’re are probably wondering what a bill of exchange is.

Or, you just want to know what it entails and its importance when importing from China.

Well, today’s guide answers it all.

What is a Bill of Exchange Document?

It refers to an instrument in a written form containing unconditional order by one party to another to pay a certain amount of money for received goods or services.

The payment can be immediately or on a fixed date.

In simple words, it means a bill, which drawn by an individual who instructs another person to pay a certain amount of money to another person.

The drawee must sign the bill as an indication of acceptance the converts it to a post-dated cheque and legally binding contract.

In some cases, it is also known as a trade draft. Even so, the selection is negotiable instruments.

Sample bill of exchange

What is the Purpose of a Bill of Exchange?

The purpose of this instrument is to bind one party to pay another party a particular amount of money at a predetermined date.

It enhances efficiency when it comes to facilitating payment in international trade.

Who are the Parties involved in Bills of Exchange?

Bills of exchange has five major players with different roles, and they include the following;

Drawer – This is the party, which creates the bill of exchange. He is responsible for making and signing the instrument thus at times referred to as the maker.

In an export transaction, it is the seller who draws the bill as money owned to him.

Also, a creditor entitled to receive money from a debtor can as well draw this instrument.

Drawee – This refers to the individual upon whom the bill of exchange is drawn. It is the debtor who must pay the money to the drawer.

In export business, it is the seller who draws the bill on the buyer, who is the drawee.

Payee – This is the person to whom payment has to be made. It can be a third party or better still the drawer himself.

Endorser – This is the person who has appended his signature on the back of the bill of exchange. The essence is to signify he has obtained title for bill on his/her account of the original payee.

Endorsee – It refers to the individual whom the bill is endorsed. The endorsee can receive the money from the drawer.

What are the Features of a Bill of Exchange in Import/Export?

When handling a bill of exchange in the import/export business, you must comprehend its essential features.

Some of its key features to look into in this instrument include the following;

• It must be unconditional
• It contains a confirm order to make a payment and not merely a request.
• It contains a predetermined date, which the money should be paid to the creditor
• It contains an absolute order to pay a particular amount
• The amount should be paid on-demand or upon expiry of a fixed time.
• The money is paid to particular beneficiary of the bill, specific individual or against a definite order.
• The maker must duly sign and stamp it, and the drawee must accept it.
• It must contain a revenue stamp

What are the Benefits of Paying by Bill of Exchange in International Trade?

It is a legally binding document.

Thus it becomes easier for the drawer to recover the amount legally in case drawee fails to make the payment.

It is possible to exchange it from one party to another for adjustment of the debt.

The bill bearer must wait for the due date of the bill to receive payment. It thus comes out as a discounting facility.

It provides a fixed date on which the amount is to be paid.

It, therefore, makes it easy for the person collecting it to know precisely when to expect the money.

The borrower also knows when he’s to make the payment.

It is quite flexible and allows the importer to purchase commodities on credit and make payment of predetermined date.

It has a wider acceptance, particularly where a foreign bill is concerned.

It allows both parties to make and receive the payment.

How many Types of Bill of Exchange are there?

They are quite several, and in most cases, the particular type depends on its purpose of objective.

Some of the common types include the following;

Types of bill of exchange

Clean bill – It does not have proof of paperwork or document.

The relative documents, in this case, are sent directly to the importer to facilitate delivery of the shipment.

Interest, in this case, is comparatively higher than other bills.

Documentary bill – It is the type, which is supported by the relevant paperwork confirming the genuinity of a transaction that took place between seller and buyer.

Usance bill – It refers to the type, which is time-specific hence the payment must be made within a specific period.

Accommodation bill – It is the type in which the bill is drawn and accepted on the basis of mutual assistance.

Also, it is designed for mutual benefit without necessarily a trade function.

It hardly involves sale or purchase of any commodities or services.

Sight bill – It is the type, which compels the drawee to make payment upon presentation.

It does not have a fixed date of payment; hence must be cleared when presented.

It is also known as demand bill of exchange.

Foreign bill – It refers to the type, which can be paid outside the country.

Export and import bills of exchange are examples of a foreign bill.

Who is the Drawer in Bills of Exchange?

This is the party that obliges the drawee to make the payment to the payee.

It is the individual responsible for writing and signing the bill of exchange.

The drawer and the payee are same entities unless in circumstances where the drawer transfers the bill to the third party.

Is Cheque a Form of a Bill of Exchange?

Absolutely correct!

Section six of Negotiable Instrument Act stipulates that a cheque is a bill of exchange, which is drawn on a particular banker.

It further states a cheque is payable on demand and incorporates an electronic image of shortened cheque and a cheque in electronic form.

A cheque and bill of exchange have quite a number of differences.

However, a cheque resembles and contains several features of a bill of exchange.

Therefore, it is considered a form of a bill of exchange.

Cheque

What is the Difference Between a demand Draft and a Bill of Exchange?

A demand draft refers to a special bill of exchange drawn by a particular branch on another branch who is a drawee.

In this case, the payee is the beneficiary of a demand draft.

Demand draft just like bill of exchange is negotiable but relatively difficult to revoke.

A bill of exchange, on the other hand, involves three major parties, including the drawer, drawee and payee.

What’s the Difference Between a Promissory Note and a Bill of Exchange?

There is a thin line between promissory note and bill of exchange.

Ideally the former is primarily a promise to pay written documents containing a maker and the lender.

Promissory note

Bill of exchange is a written order with non-interest bearing used in international business.

It binds one party to pay another party a certain amount of money within a specific future date.

The parties involved in promissory note are two; the payer and the payee.

In bill of exchange, the parties involved are three; the drawer, drawee and payee.

A promissory note is unconditional whereas, a bill of exchange provides room for negotiation hence accepted conditionally.

The maker cannot self-pay in a promissory note.

On the other hand, the drawer and payee in bill of exchange may be one entity or person.

A drawee must accept the bill of exchange before it’s presented for payment.

A promissory note hardly requires any acceptance given it is signed persons liable to pay.

Promissory note presents unconditional promise to pay, whereas the bill of exchange provides for unconditional order to order to pay.

In a promissory note, the maker’s liability primary and absolute.

Contrary, in bill of exchange, the drawer’s liability is secondary and conditional.

What is the Importance of a Promissory Note in Bill of Exchange?

It provides legal proof – the importance here is that it binds the involved parties thus helpful should you wind up in court due to non-payment.

It determines a payment schedule – The process of creating this document compels the payer to come up with predetermined terms. It thus enables the payee to work with a fixed payment schedule for convenience.

Resolves issues surrounding tax – In some instances, there could be tax implications you need to consider depending on the amount. This note thus helps to demonstrate the money was loaned and not necessarily a gift.

It makes it less personal – The legal terms and conditions on promissory note reduces or eliminates possible future disagreements. It makes it clear the debtor must repay the amount of money accordingly.

Who can issue Bills of Exchange?

It is issued by the creditor, who in turn instructs the debtor to pay a specific amount of money within a certain period.

What is Acceptance of Bills of Exchange in Import/Export Business?

It refers to the procedure involving acceptance of exporter’s bill of exchange by the drawee.

The drawee usually confirms his acceptance by ensuring he signs under the word accepted on the face of the bill.

Simply put, it is a guarantee of payment, which the drawee extends towards the order of the drawer.

It is essential since, without it, the drawee has no legal obligation to make a payment on any bill addressed to him.

How does a Bill of Exchange compare to a Letter of Credit?

Bill of exchange can be a written export document with unconditional terms of payment from the payer to the payee within a specific period.

It involves the drawer, the drawee and the payee.

The payee is guaranteed to have a specific amount of money within the stipulated fixed date in a bill of exchange.

Letter of credit is an instrument issued to the seller by the buyer’s bank guaranteeing payment upon meeting the stipulated demands.

The parties to the letter of credit include the buyer, seller, and banker (third party).

How letter of credit works

Both bill of exchange and letter of credit offer flexible terms.

It means the involved parties can negotiate and agree on feasible terms before committing to the same.

A drawee has to accept the bill of exchange before the payment is effected.

In letter of credit, the commodities must be dispatched before the buyer’s bank can release money to the seller’s account.

What does “Discounting of a Bill of Exchange” mean?

It refers to the process of converting the bill of exchange into cash before its actual maturity date.

It usually happens when the receiver needs the money urgently before the specific date of maturity.

Bills of exchange typically have a fixed maturity date.

However, if you want to get cash before the actual maturity date, you can choose to cash the bill and get the money.

In the end, the creditor receives comparatively less cash than the face value of the bill of exchange, thus the discount.

The discount is the difference you get between the maturity value and the actual amount you receive.

How do you Calculate Discount on a Bill of Exchange?

The rates for a discount on a bill of exchange varies depending on different prevailing circumstances, especially variance in periods.

Also, the bank charges the discounting rates from drawer at a specific rate.

The bank deposits the net amount of and charges a certain amount as the discount.

So;

Discount = Actual amount of bill – Net amount of bill (Based on period)

Can you Exchange a Bill of Exchange at the Bank?

Absolutely right!

You can exchange this instrument at a commercial bank.

All you need is to ensure the payee’s bank advises the payer’s bank on terms surrounding the bill of exchange.

When importing from China, you need to understand whether or not the specific bank you are transacting on accepts exchange of this instrument.

You also need to know the rates for varied transactions surrounding exchange and use of this instrument.

Why is a Bill of Exchange often Unconditional?

It involves negotiation amongst the involved parties to enhance practicality of this instrument as a mode of payment.

The parties agree on feasible terms and conditions then set a predetermined date for effecting the payment to the payee.

It is this flexibility, which also makes it an unconditional financial instrument for payment even when you’re importing from China.

You can also transfer the bill of exchange as many times as possible until its maturity.

What Happens when you’re unable to Pay the Amount of Bill on a Bill of Exchange upon Maturity?

There is a provision, which allows you as the maker to cancel the old bill and draw a new bill of exchange.

The process of canceling and drawing a new bill of exchange is known as Renewal of Bill.

However, the drawee will pay applicable interest to the acceptor often paid in cash or can be transferred and added to the new amount of new bill.

What is the Process of Bill of Exchange Renewal?

Once the new bill of exchange is issued, it implies all both parties involved are affected.

Therefore, entry of renewal is effected on the books of both the drawer and acceptor.

In case the drawer discounts or dishonors the similar bill entries are made as for dishonor.

Subsequently, second entry for interest is effected.

It is either payable in cash or by cheque.

Then the third entry is in regards to renewal of the bill.

Renewal of bill of exchange is often effected on three grounds;

• Renewal due to failure to pay the bill upon maturity
• Renewal in case of partial payment
• Renewal in case of dishonoring the bill

Is a Bill of Exchange Transferrable?

Most definitely!

It is transferrable such that the drawee may find himself paying a different participant than it initially accepted to pay.

As a payee, you can transfer the bill to another party by ratifying the back of the document.

In this case, the risk is should the entity accept the bill of exchange, and the drawee fails to pay.

What does “Bill of Exchange after Sight” mean?

It merely implies the days of for honoring the bill of exchange shall be considered from the date the drawee accepts it.

So basically, the period, in this case, starts from the date after acceptance by the drawee.

How are due Dates/Maturity Dates given in a Bill of Exchange?

They are given based on the prevailing situation as follows;

Months – It is calculated depending on the number of months in a calendar year.

It entirely ignores the days in the month, but three days of the grace period are added.

Days – It is calculated in days, including the day of payment but excluding the day of transaction. A three-day grace period is also added.

National holiday – When maturity date falls on a national holiday, the actual maturity date of the bill becomes the preceding business day.

Emergency holiday – Should the due date be declared an emergency holiday, the actual maturity/due date becomes the first day from maturity date.

Bill of exchange sample

What does it mean when Maturity Date is Bill after Sight?

It means the period commences from the date of accepting the bill.

Even so, the bill after sight is payable at a predetermined period after sight.

Also, there is a three-day grace period allowed on this kind of bill.

What are the Usage Options available to the Holder of a Bill of Exchange?

The bill of exchange holder can use it in any of the following available options;

• It can be endorsed or negotiated in favor or creditor
• The bank can discount it
• It can be retained until the maturity date
• It can be forwarded to the bank for collection

What is the Concept of an Accommodation Bill of Exchange?

It arises whenever a bill of exchange is drawn and accepted for the sake of mutual help.

The drawee accepts the accommodation bill of exchange as a way of accommodating the drawer.

In this case, the drawee becomes the accommodating party, whereas the drawer becomes the accommodation party.

The entries for accounting for accommodation bills are designed the same way as other bills.

When is a Bill of Exchange said to be Dishonored?

It happens when the drawee forfeits payment on the date of maturity.

In most instances, the bill gets dishonored when the drawee has insufficient funds to pay.

It also becomes dishonored when the drawee becomes insolvent.

Such a situation culminates to restoration of the acceptor’s liability.

At Tj chinafreight China, we handle all your shipping needs.

In case you want any clarification about any shipping documents, you can contact Tj chinafreight now

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Probably, you’re thinking furniture shipping from China is a complicated process.

Or, you want to import furniture from China and you don’t know how to do it.

In this guide, I will show you how to ship furniture from China easily and faster.

Read this guide first before you import furniture from China.

Understand the China Furniture Market & Identify Supplier

Before embarking on furniture shipping from China, you first need to understand the China furniture market.

China’s furniture market has gained popularity in furniture export since the year 2004.

Before, Italy was the leading furniture exporter but due to China’s cheap labor and manufacturing cost, China emerged as the leading country in furniture export until date.

In recent times, more people are embracing home décor and China’s huge population has also boosted the furniture industry.

There are several markets that you can purchase furniture from in China the largest one being the Shunde furniture wholesale market.

You can either choose to visit China and get first-hand information about the furniture markets or conduct online research.

Through this, you will get to identify your preferred supplier.

Keep in mind that there are thousands of suppliers, both genuine and fake.

Therefore I would highly recommend that you keenly assess your supplier before initiating any business deal.

Some of the popular methods you could use to identify your supplier include;

• Websites – Online sites such as Alibaba, Made in China, Ali express, and Global sources among others offer great platforms for importers and suppliers to link up.

In addition to that, some of these sites include ratings of each supplier thereby making it much easier for buyers to identify their preferred suppliers.

• Plan a visit to China – In as much as visiting China could consume more resources, it’s one of the best ways that you could use to find your supplier.

The reason being you will get first-hand information and get to create a stronger bond with your supplier for future purchases.

• Expos and Trade fairs –China has several Trade expos that happen yearly with some taking place twice every year.

Attending such trade fairs will expose you to several suppliers available in the China furniture market.

Some of the trade fairs i China include;

• Canton fair
• Furniture China
• Hong Kong Houseware fair
• China International Furniture Fair
• Shanghai International Furniture Machinery & Woodworking Machinery Fair

 Where to Find China Furniture Manufacturer

Locating furniture manufacturers in China should be one of the easiest steps when shipping furniture from China.

There are several manufacturers in all cities and therefore the main agenda could be to find a genuine and ideal manufacturer for your furniture preferences.

Some of the places where you can find China furniture manufacturers are not limited to;

• Fujian
• Shanghai
• Zhejiang
• Shandong
• Jiangsusuperhero
• Guangdong

Apart from these cities, you can identify your manufacturer from other platforms such as;

• Alibaba
• Aliexpress
• Trade fairs
• Google
• Global sources

  Reasons why you should Import Furniture from China

From your research, you might realize that most furniture importers ship from China.

There are several reasons as to why China is the preferred market for furniture. Some of these include;

• Quality furniture – In as much as China is known for substandard products, people always forget that the quality products also come from China.

It all depends on your cautiousness when purchasing.

China has quality furniture some made of very high-quality wood therefore guaranteeing you longer service.

• Uniqueness – You could get very unique furniture pieces from China.

Take, for instance coming across furniture with no glue or nails used, sounds like a total dream right.

However, that’s not the case in China.

Some pieces of furniture are manufactured in a way that they neither have nails, screws nor glue.

That aside, there are several other unique designs for you to choose from.

• Cost-effective –China offers competitive prices not only on furniture but also on all other products manufactured in the country.

The availability of raw materials and convenient marine transportation are some of the reasons behind the affordability of furniture in China.

With cost-effective prices, you are bound to save and increase profit margins for your business.

• Diverse designs and options –China has any type of furniture you might think of.

From different designs, sizes, colors, and materials, you are presented with several choices.

Therefore, it’s wise to plan for what you want before visiting China to shop for furniture. Failure to these you might consume more time trying to figure out which furniture best suits your taste.

• Customization services –Most interesting, is the fact that you can design your furniture and have it manufactured in China.

Most if not all China furniture manufacturers offer room for customization allowing you to have your dream furniture manufactured.

This is a great option more so furniture importers who are very specific in their tastes.

Buy Furniture from China Direct or use Sourcing Agents

You can either choose to purchase your furniture directly from China or hire sourcing agents.

Sourcing agents come through in several ways when shipping from China as they will help in the following;

• Communication and translation -Chinese is the main language in China and therefore you are bound to experience a language barrier.
• Identifying the appropriate supplier –A sourcing agent does all the research work for you and selects the best supplier.
• Shipping and logistics duties
• Purchasing furniture of your behalf
• Investigation of supplier’s qualifications
• Quality control – A sourcing agent will ensure that the quality of your goods meets your required specifications.
• Customs declaration
• Negotiation of prices

A sourcing agent does all the work for you and therefore you are left to continue with your daily routines.

Shipping directly from China can be very challenging due to several factors such as;

• Language barrier – Lack of knowledge of the Chinese language will make it difficult for you to easily communicate with Chinese businesses.
• Scams- There are several scammers in the market and several importers have fallen for such traps before.
• Unreliable suppliers – It’s not new to find a supplier who makes your shipping very difficult. This is one of the reasons why shippers choose to hire sourcing agents.
• Quality control – Having met your manufacturer online, it might be difficult to tell whether the furniture they are manufacturing for you to meet the quality as per your requirements.

Having said this, you can easily tell that there is more to do than just directly shipping.

That is why sourcing agents come through and help you maneuver through all these processes and challenges.

Check if you Can Find Furniture from China Free Shipping Offers

You can find free shipping offers for your furniture from China.

However, don’t be naïve and believe that Chinese suppliers will offer you free shipping without any catch.

They are not that generous.

If by chance you come across a free shipping offer, just know that the shipping fee has already been calculated in the total cost.

In such cases, once you make payment of your goods you will not pay any other fees.

Estimate the Time Furniture Shipping from China Takes

Furniture shipping from China might take from 3 to 7 days when using air freight and 6 to 8 weeks when using water freight.

The shipping time from China will depend on:

• Distance –The longer the distance the longer the delivery time.
• Mode of transport used – Air transport is the fastest of them all and therefore using it will guarantee you faster delivery as compared to water transport.
• Holiday factors – Shipping during a holiday will lead to delays in your shipment as some businesses remain closed.
• Routes taken – Straight routes tend to be shorter as compared to curved routes. Therefore, the route taken will affect the delivery time of your furniture.

  Verify Quality of Items before Furniture Shipping from China Begins?

Verifying the quality of your furniture before shipping commences is an essential step for any importer.

You can choose to hire a sourcing agent or verify the quality by yourself.

By so doing, you will identify faults or substandard furniture earlier and avoid losses later.

Quality verification should be done when the furniture is in the factory so that any adjustments can be made right away.

Calculate the Cost of Shipping Furniture from China

There are several costs that you will incur when shipping from China.

If you decide to ship by yourself the costs might be cut or might be more expensive.

This depends on your knowledge and experience in the shipping industry.

By this I mean, you can identify genuine suppliers and know the tricks in the import/export business.

When using a sourcing agent, you will have to pay for his services which can range from as low as $35 to as much as $90 and more.

Not forgetting that you will also be required to pay for the container cost which ranges from $3000 to $5000 depending on the size.

However, the container cost might be lower more so if you are not shipping many items.

Remember, you also need to have all the required trade documents for your furniture shipment and this adds up to your total costs.

Aside from these, there might be other additional costs associated with your shipment and therefore planning and budgeting will help you have a smooth shipping process.

How LCL vs FCL Furniture Shipping from China Compare

With LCL (Less than Container Load) furniture shipping, the load doesn’t occupy the full container.

Therefore, it is shipped along with other merchandise and later on the goods are separated at the destination port.

As compared to LCL furniture shipping, FLC (Full container Load) furniture shipping will occupy the whole container.

The shipment will not be mixed with other merchandise from different consignees.

Choose Mode of Shipping Furniture from China?

The different modes of shipping will determine your cost and how fast you want your goods delivered.

You can choose to ship furniture using one of the following modes of shipping;

• Airfreight
• Sea freight
• Road freight
• Rail freight

If you want a faster delivery, air freight would be the ideal one.

However, be prepared to dig deeper into your pocket as compared to the other modes of shipping.

The cheapest and slowest of them all is sea freight and it’s mostly suitable for transporting bulky goods such as furniture over long distances.

When transporting your furniture using sea freight, there are two common modes of container shipment that you can use.

• Less than container Load (LCL) – Using this method would mean that your furniture will not occupy all the container space.

They will be shipped together with other merchandise.

This is the ideal container shipping mode to use when shipping smaller quantities.

• Full container load (FCL) –As with FCL, your furniture will take the full space of the container.

Therefore, you have to be shipping large amounts to use this mode of container shipment.

Rail and road freight is suitable for countries bordering China who are linked by the Chinese road and rail transport networks.

Among all these modes of shipping furniture, you are free to choose one that well suits your preferences.

Calculate the Amount of Taxes when Shipping Furniture from China

Paying taxes is mandatory for any type of shipment from China.

The amount of tax charged when shipping is 17% against the CIF value.

Remember, the amount of tax charged normally depends on the type of goods being shipped from China.

How to use China Shipping Agent in Furniture Shipping from China

Using China shipping agents will save you big time from all the shipping processes that you will have to encounter.

A China shipping agent will help you navigate the following waters;

• Loading and unloading –Once your furniture gets to the port, they will need to be unloaded from the truck. Therefore you could use a shipping agent to efficiently perform this task.
• Freight documentation – Shipping agents also take care of all your documentation processes and duties.
• Collection of goods –If your goods are with your supplier, shipping agents collect them and deliver to your port of choice.
• Custom clearance – Passing your goods through customs can be such an overwhelming process. Instead of having to go through this, you could hire a shipping agent for a faster and efficient process.
• Booking of cargo space – A shipping agent will ensure that your shipment has been allocated a cargo space.
• Planning your storage space – As compared to other smaller items, furniture occupies a larger space. Therefore, you could use a shipping agent to get storage space for your furniture while they wait to be shipped.

Consider Insurance during Furniture Shipping from China

Not only will insurance protect your goods against loss but also damage.

Therefore, it’s necessary to consider insuring your furniture when shipping from China to avoid unforeseen risks.

Shipping lines offer insurance cover but it’s wise to add extra insurance for proper coverage.

Remember, the value of your furniture will determine how much you will pay for your insurance.

The higher the value the more it will cost you.

Insurance mostly covers shipwrecks, sea accidents as well as piracy and excludes damages that occur as a result of poor packaging.

Document you Need when Shipping Furniture from China

You will be required to provide trade documents when shipping any item from China and this includes furniture.

Some of the documents you need to have include;

• Bill of lading –Provides more information about the quantity, type, and the destination of the goods being shipped.
• Insurance certificate –An insurance certificate provides information on particular insurance coverage. Some of the details included are; type of coverage, policy number, and the name of the insured just to mention a few.
• Commercial invoice –Not only does a commercial invoice serve as a proof of sale but it also facilitates the passing of your goods through customs.
• Certificate of origin – it will certify that your pieces of furniture have been obtained, manufactured, and processed from China.
• Packing List – A packing list gives information about the quantity and type of goods being shipped.
• Shipper’s letter of instruction – This document outlines all the shipping requirements as per the shipper’s preferences on the handling of goods.

Best Packaging Solution during Furniture Shipping from China

Packaging will determine whether your furniture will arrive in one piece or otherwise.

Keep in mind that your furniture might encounter several loading and unloading processes.

Owing to this you should choose quality packaging that will be able to sustain all these movements.

Factors such as moisture, weight, pilferage, and breakage should be considered when packaging your furniture.

Most importantly, always ensure that you have effectively given clear instructions to your suppliers on how you want your furniture packaged.

Here are some tips for packaging your furniture;

• Wrap delicate parts using bubble wrap
• Wrap the furniture legs with an extra layer of bubble wrap.
• Use corrugated cardboard to protect the corners of your furniture
• Use special blue tape and pieces of flat cardboard to protect glass surfaces. Afterward, ensure that they are wrapped in a bubble wrap.
• Additionally, using high-quality tape will help secure your goods.

Understand Import Clearance in Furniture Shipping from China

Import custom clearance might determine how fast or slow your shipping takes.

Make sure that you or your suppliers know how to obtain the required permits and authorization.

Here are some of the documents that you should possess;

• Documents for conventional cargo
• Cargo clearance documents
• Documents for containerized furniture
• All other trade documents for shipping

If you choose to use a freight forwarder, you don’t have to worry about all these processes as they will help you navigate through.

Let China Furniture Supplier Handle the Shipping or Do it Yourself

You can either import furniture from China by yourself or choose to let your China furniture supplier handle your shipping.

Either way is good.

However, this is what I have to say.

Shipping by yourself requires you to keenly do adequate research before commencing any shipment process.

If you have zero knowledge of the Chinese language, this should be the time to learn or else look for a translator.

If you’re still new to the import/export industry then you have to understand all the fundamentals of shipping.

Letting your China furniture supplier handle your shipment might be a good idea.

I’m stressing on “might” since it also comes with its drawback.

Looking at the brighter side, a supplier will carry all the shipping duties on your behalf.

Therefore, you will be at ease knowing that your goods are being taken care of.

However, using a supplier for your shipping processes is pricier.

This brings us to the reason why several importers hire freight forwarders and shipping agents for such duties.

Hire Freight Forwarder during Furniture Shipping from China

If you want peace of mind when shipping furniture from China – hire freight forwarder.

A freight forwarder is responsible for offering forwarding and clearing services.

There are several freight forwarders in China and therefore identifying one shouldn’t be a hassle.

However, you need to select a genuine freight forwarder to work with.

Freight forwarders come in handy in several ways not excluding;

• Booking space for your cargo
• Advising the shipper on possible challenges or negotiations and give recommendations where possible.
• Submitting documentation and performing custom clearance
• Take care of all Packaging, storing and distribution processes
• Keeps the shipper notified while goods are on transit

Working with a freight forwarder is not only time saving and cost-effective but also efficient and versatile.

Freight forwarders are versatile in that they can respond to any arising issue with immediate effect.

Consider Appropriate Incoterm when Shipping Furniture from China?

When choosing the appropriate incoterm for your furniture shipments, always ensure that it works in your favor.

Select one that will give you more control over your shipment.

Once you leave your supplier to manage your shipping, you will have less control over the price and terms agreed between him and the freight forwarder.

It’s always wise to reach out to the freight forwarder and directly negotiates on the freight prices.

There are several incoterms some of them include;

• DAT
• FOB
• CIF
• EXW
• CPT
• DAP
• DDP
• CFR
• FAS
• FCA

Therefore, choosing the right incoterms will not only determine the supply chain efficiency but also transit times.

The suitable incoterms to use when shipping furniture from China would be FOB, CIF, and EXW.

Keep in mind that each of these incoterms varies in terms of risks, security, and responsibility.

Know MOQ when Importing Furniture from China

The minimum Order Quantity refers to the minimum amount of products that a supplier is willing to sell at a given time.

Different suppliers offer different MOQ’s for their furniture.

Also, the MOQ might vary depending on the size and type of the product.

In most cases, smaller items tend to have a higher MOQ as compared to larger products.

Like for instance, a dining table set manufacturer might have an MOQ of 10 while a stools manufacturer might set an MOQ of 500 pcs.

There are two types of MOQ;

• MOQ based on container volume (e.g. 1*FCL 40” container)
• MOQ based on the number of units (e.g. 1000 pcs)

Keep in mind; you can negotiate the MOQ with factories if you choose to use their materials such as type of wood.

Use Secure Payment Options when Shipping Furniture from China

There are several payment options to choose from when shipping from China.

The common payment methods used by shippers include Telegraphic Transfers, PayPal, and Letter of Credit.

Of the three, a letter of credit would be suitable when shipping furniture from China since it’s considered the most secure.

However, a letter of credit is mostly ideal for large transactions, and owing to this; it creates a way for a lot of financing options.

Most Chinese suppliers don’t advocate for the use of PayPal because of several reasons.

Not only does it have high fees but also the supplier risks having chargebacks after dispatching goods.

PayPal would only be ideal for sample orders or any other small orders.

Telegraphic Transfers is one of the oldest payment methods and it is suitable for low to medium transactions.

Other payment options in China include;

• Online escrow
• Cash
• International credit cards
• Western union

All in all, always make sure that the payment option not only favors your supplier but also yourself.

Tj chinafreight has been shipping furniture to various destinations globally, including thePhilippines, Singapore and other countries.

Contact us today and a let Tj chinafreight handle all your shipping needs.

If you’re exploring China toys market, this guide will help you get the best prices.

Whether you want to know about the safety of Chinese toys, quality marks, regulations, material types or location of the toys market – they are all here.

Read this guide to avoid losses, time wastage, and unnecessary inconveniences.

Is it Safe to Buy Toys from China?

Yes, it is.

In as much as China had been on the limelight regarding some low quality toys, there exist several manufacturers who can get you safer toys.

However, you can never be sure and believe that all toys are safe.

Always ensure that you are dealing with a certified manufacturer to avoid falling into a mess.

The main toxic ingredient in toys is Lead.

China requires that all consumer products contain a maximum of 90 parts of lead per million.

By so doing, children are safeguarded from the harmful effects of the chemical materials used to manufactures toys.

Therefore, it’s also advisable that you ensure proper quality control of your toys before importing from China.

Quality inspectors and freight forwarders could come in handy in performing this task.

How do China Toys Factory Control Quality?

There are a couple of ways through which most China toy factories control the quality of their products.

The first step to manufacturing quality toys is the use of quality raw materials.

Chinese factories ensure that the raw materials used not only meet the required standards but also are of high quality.

Also, conducting lab tests has proved to be an essential step when manufacturing quality products.

The reason being in the past, low-quality toys had been found to contain a high amount of lead which is harmful to human health.

Owing to this, China requires that all factories of consumer products not to exceed 90 parts of lead per million.

Therefore, not only is the quality of toys upheld but also safety.

Chinese factories also control quality by allowing rooms for corrections.

Take, for instance, you purchase your products and afterward discover some defects.

Therefore, by allowing for corrections, importers can have their product defects sorted out before being released from the factories.

Remember once your toys have been released from the factory it’s hard to follow up with all the corrections required.

Which are the Top China Toys Market?

China has several markets for everything and therefore if you are planning to purchase toys here are the top wholesale markets you might consider.

· Yiwu Toys Wholesale Market

Yiwu Toys wholesale market is not only huge but also offers a wide variety of toys at much-discounted prices.

If you are planning to visit this market, head over straight to building 1 as this is the central location to find toys.

Here, you will come across thousands of suppliers selling different types of toys including inflating toys, regular toys, electronic toys, and fabric plush toys.

· Guangzhou Toys Wholesale Market

If you have happened to attend the Canton Fair, you must be familiar with Guangzhou.

If not, Guangzhou has 4 toys wholesale market namely

• Zhonggang Boutique toys Wholesale Market Guangzhou – in front of International Yide Stationery & Toy Plaza you will find Zhonggang Boutique toys wholesale market.

The main products sold here are stationery industries and toys.

• Liwan toys wholesale market –Covering an area of 2000 square meter, this market contains over 80 stalls inside it.

Some of the toys to purchase from here include; Electronic toys, stuffed toys, voice control toys, and remote control toys.

Address; No. 36-38, Zhongshan Eighth Road, Liwan District.

• Wanling plaza Guangzhou –Wanling plaza is known for its toys and stationery.

The toy markets start from the ground floor up to the 4th floor of the building.

• International Yide stationery & Toys Plaza Guangzhou – Guangzhou Toys wholesale market is located in Guangzhou city in Yide Toys and Gifts wholesale center.

Here, you will find more than 1200 stalls with several suppliers of different toys.

· Shantou Toys Market

Shantou is a toy exhibit mall comprising of over 8000 suppliers.

The main toys sold here are plastic toys and are of much higher quality.

Owing to this, you are bound to pay more for toys in this market as compared to other toy markets.

Also, the MOQ is much higher.

On the other side, instead of dealing with middlemen, you will be making your purchases directly from the factory.

· Zhengzhou Toys Wholesale Market

Zhengzhou toy wholesale market is located in Zhengzhou city near Zhengzhou train station and it’s well known for having low prices on toys.

In addition to that, the MOQ is also lower and this explains why there are low-quality toys in this market.

· LingyiYongxing Toys Market

Lingyi is considered the largest toy market in North China.

With over 4000 wholesalers, the market is divided into three main parts which deal with different types of toys.

• Area A – inflated toys, children’s bicycles, and electronic toys
• Area B – Plastic toys
• Area C – Plush toys

· Baigou Plush Toys Market

If you are planning to purchase toys at low prices, you should make a stop at Baigou plush toys market.

In as much as low prices attract low quality; you might end up getting out with quality toys from this market.

With a little extra effort.

The market has a total of 380 suppliers selling toys on a wholesale and retail basis.

· YangjiangWutinglong International Toys Market

Just as Baigou plush toy market, YangjiangWutinglong toys market sells plush toys(stuffed toys).

It is one of the biggest plush toys market in China with more than 2,500 shops.

The products sold here are purely plush toys, plush gifts, and plush materials.

The good news is you can purchase as little as a single product from this market.

Meaning, the MOQ starts from zero.

Nevertheless, expect the price of a single unit to cost more as compared to the wholesale price.

· Yunhe Wooden Toys Market

Located in Zhejiang province, Yunhe wooden toy market mainly consists of factory dealers.

As the name implies, the toys sold here are made of wood.

There are several shops with some factories displaying their toys on showrooms.

Therefore, you can easily choose your preferred toy and directly make an order.

As I mentioned earlier, you are bound to find both quality and low-quality toys in China.

Therefore, here is a quick tip;

• Be cautious of cheap toys. There’s a high possibility of getting low-quality toys as a result of purchasing them at very cheap prices.

When negotiating with your manufacturer weigh the price and options carefully.

If your manufacturer insists on a certain price avoid getting too low as this will force them to minimize their production cost.

Meaning, they will go for the cheapest materials to meet your budget thereby compromising the quality of your toys.

• Quality can as well be compromised as a result of unclear product specifications.

Always ensure that you communicate what you want without leaving any single detail.

How Big is Toy Industry in China?

China leads in both manufacturing and exportation of toys worldwide producing over 70% of the world total.

The market size of toy manufacturing in China stands at $41bn with close to 10,000 manufacturers in the industry.

Some of the top companies with the largest shares in the toy market include;

• NanhaiHongjing Co Ltd
• Goodbaby Group
• Nanhai Sino-U.S.A Toy Factory
• Lerado Group Market Share
• Alpha Group Market Share

With the advancement in technology, the demand for toys is shifting from decorative and traditional toys to electronic toys.

China’s potential growth has led to the emergence of both domestic and international toy manufacturers.

This has in turn led to the expansion of the toy industry over the years.

Which Quality Marks should Toys from China have?

One of the main quality marks found in all Chinese toys is the CE mark.

The CE marking confirms that the toy conforms to the EU directives.

This includes environmental, health, and safety standards.

The China Compulsory Certification (CCC) is another quality mark that you need to ensure your product complies with.

Failure to include this mark might result in your goods being held at the border or further enough returned to the sender.

Additionally, before printing the CCC mark on your products, always ensure that you already have the certification.

Failure to this attracts penalization of your products or subjection to fines.

Should you buy Wholesale Toys China on Alibaba or Toy Factory in China?

You can either choose to purchase your toys from Alibaba or a toy factory.

However, this is what I have to say.

toys directly from a factory have greater benefits as compared to purchasing from Alibaba.

Here is why;

• Competitive prices –Alibaba has both manufacturers and suppliers. Therefore the prices can be higher if you purchase from a supplier as compared to making direct purchases from the factory.
• Build stronger bonds –As you buy direct from the factory, you can negotiate on prices one on one with your manufacturer.

In the process, you end up building stronger bonds for any of your future purchases.

• Reducing the risks – The probability of getting scammed in Alibaba is higher as compared to purchasing directly from the factory.

Don’t get me wrong, Alibaba is not a scam, the only thing you need to know is that you should not expect all vendors to be genuine.

Just like any other online business platform you know, some scammers will try to get it the easy way.

If you are making big purchases especially for a longer period, buying directly from the factory is the ideal option.

What determines China Toy Prices?

China is known to be the leading producer of toys worldwide.

Wondering why this is so, one of the main reasons why most toy importers choose China is due to the competitive prices.

You could purchase a toy and sell it at thrice the buying price.

This is a steal!

Nevertheless, getting to understand why the prices are so affordable is not difficult.

The main determinants of toys prices in China are;

• Cost of raw materials – China acquires most if not all of its raw materials locally and therefore these impacts the general prices of products including toys.
• Quality –Quality is a key determinant of the toy prices in China.

You are bound to come across both quality and substandard products when purchasing from China.

The higher the quality the pricier the toys and vice versa.

• Availability of cheap labor –China’s huge population immensely contributes to the cheap labor for the manufacturing industries.

Owing to this, the products manufactured go for cheaper prices as compared to other countries.

• Size – Bigger toys cost more as compared to smaller ones due to the extra cost incurred in the production process.

What are the Most Popular Toys in China?

With the many types of toys in China, you might find it difficult deciding on which toys to purchase.

To make your selection easier, here are some of the popular toys in China;

• Plush toys
• Building and construction toys
• Dolls
• Baby and Infant toys
• Remote control toys
• Games and puzzles
• Sports and outdoor play toys
• Activity toys
• Ride-on vehicles
• Arts and crafts
• Model vehicles

Why is Yiwu Toys Wholesale Market Popular?

Yiwu is the largest commodity wholesale market worldwide and Yiwu Toys wholesale market is part of it.

One of the reasons why Yiwu toys wholesale market is popular is due to the many varieties of toys available.

And that’s not all; the toys here are sold at relatively cheaper prices.

In addition to that, Yiwu toys market keeps up with the current trends in the toy industry every single day.

Therefore, if you’re planning is to purchase trendy toys at the best prices, this is the ideal market for you.

Are there Regulations that Control Toy Manufacturing Industry in China?

Yes, there are regulations.

One of them surrounds the use of lead and any chemicals on toys.

China requires manufacturers to use a maximum of 90 parts of lead per million.

This is because lead is considered hazardous.

Therefore, to ensure that kids are not exposed to such, manufacturers are required to abide by this regulation.

In addition to that, all toys need to meet the required standards.

Therefore, manufacturers need to have the required certifications, licenses, registrations, and marks on their products.

How do you Import Toys from China?

Importing from China is such a profitable business and this includes importing toys from China.

First, you need to decide on what type of toys you want to import.

Choose the type of toys that will bring your business.

Having done that, identify your manufacturer.

Visit the prime areas as this guarantees you that the manufacturers there are experienced in production.

Getting the right manufacturer is the key factor as this will ensure a smooth flow of operations in the production process.

Clearly outline what you want in terms of quality, quantity, designs, and any other feature you want.

Make sure that you acquire the necessary documents including tax for your import.

To save on costs, it’s always advisable to import large quantities.

After your products are ready, you can choose to ship them via air, water, sea, or rail freight.

Airfreight is the fastest yet the most expensive among them all.

It is ideal for shipping urgent products.

In as much as sea freight is the slowest, you will hugely save on costs.

Rail and road freight are applicable when shipping to countries that share borders with China.

This is because the rail and road networks only cover such countries.

However, these two methods will be applicable when transporting products from your manufacturer to your port of choice.

In case you need assistance in shipping your toys, Freight forwarders are available to make your work much easier.

They shall advise you on the favorable options surrounding shipping and take care of every shipping process until you receive your goods.

Hiring freight forwarders will have you continue with your day to day activities without worries of your shipment.

Important tips and tricks when shipping from china;

• Never import unlicensed toys as this might cause complications afterward.
• Importing in bulk will save you money as compared to small purchases.
• Beware of scammers in the import/export industry therefore be keen on who you engage in Business. Properly do your research before embarking on any agreement.
• You will spend more when using a supplier to take care of your shipment as compared to hiring a freight forwarder.
• Always request for a sample product before the actual production process begins

How much Duty will you Pay when Importing China Toys?

You will pay an import duty of 17% when importing toys from China.

The import duty is calculated on the total cost of the toys, insurance cost as well as the cost for shipping.

It’s important to have full knowledge of all the extra expenditure that you might incur before you import your toys.

How do you Barging in China Toy Market for Best Prices?

One of the benefits of buying from China is that the suppliers and manufacturers are always willing to lower their prices.

Almost everything is negotiable in China.

Keep in mind that the prices of commodities in China are already affordable.

Therefore, to effectively have your manufacturer agree to your prices, here are some secrets to bargaining in China;

• Start from the least price you can. This can mean less than half the price being proposed by your manufacturer.

By so doing you create enough room to maneuver your way to your desired price.

Always take your time; nothing hurts more than starting at a high price and the manufacturer agreeing too quickly.

• Learn some basic Chinese phrases. This does not mean that you will directly get a huge discount on your items.

By including some Mandarin phrases in your conversation you put your seller into a smiley and relatable mood.

In addition to that, your seller might also think you are not new in the market therefore he or she might start from a “lower” offer.

• Another trick would be to walk away. Once you have negotiated on the price but still haven’t agreed on your maximum price, make the last offer and start walking away slowly.

Not fast, walk as if you are looking at the surrounding vendors.

Commonly, you will be called back but if not then move forward to the next and hope for a better price.

• Never empathize with your seller –Many are the times you shall come across sellers who will try to make you reach their price through empathy. For instance, you might hear” my family won’t feed today” or “I did not even get this at half the price you are paying”.

All these are just psychological bargaining games that are meant to force you to feel sorry and buy the product at the seller’s price.

No worries, play your cards cool and respond with something like “I know.

But now I can’t afford to catch a train back leave alone having dinner!”.

• Don’t express too much interest- This is another rule for bargaining. Expressing too much interest shows the seller how bad you want the product.

Therefore, the bargaining might not yield much.

Let the seller know that you can either take it or leave it.

Why do you need Sourcing Agent when Buying from Wholesale Toy Market in China?

Sourcing agents come in handy in several ways especially if you want your purchasing to flow smoothly.

Here are some reasons why you might need a sourcing agent;

• Sourcing agents identify a suitable manufacturer or supplier for your products.

They ensure that they get a manufacturer who will produce quality products for you.

• In addition to identifying a supplier, they also negotiate with the seller to get you the best prices on your toys.
• A sourcing agent is like your business partner and therefore he will ensure that the toys are of good quality as per your requirements.
• English is not spoken by many in China and this might hinder successful business deals. Sourcing agents can communicate clearly in English and the local language.

Therefore, they easily secure great deals with manufacturers.

• With a sourcing agent, you can continue with your day to day activities without having to worry about your purchasing procedures.
• Sourcing agents eliminate the probability of being scammed.

Since they have experience in the industries they are aware of all the ins and outs of the business.

Therefore, be sure to find a trusted manufacturer for your products.

• Finally, the main aim of any importer is normally sticking to the budget. Sourcing agents help you achieve this as they eliminate the use of middlemen and being offered foreign prices other than normal prices.

What are the Limitations of Buying from Wholesale Toy Market in Yiwu?

In as much as Yiwu might be a heaven for toys, here are some drawbacks of buying from this market.

• Quality issues –Since Yiwu is known to have cheap products, the probability of getting low-quality products is high.
• Less control over customization –Most sellers in Yiwu consist of traders and not factories. As a result, it will be difficult to customize your toys to your liking.
• Language barrier –Most Chinese people are not familiar with English and therefore communicating with the sellers might be quite challenging.

Why are Chinese Toys Popular?

Not only are Chinese toys unique and cheaper but also the materials used to manufacture them are safe.

In addition to that, there are several designs to choose from both traditional toys and trendy ones.

All these contribute to the popularity of Chinese toys worldwide.

What is the MOQ in China Toys Market?

The MOQ varies from one manufacturer or supplier to the next. Smaller toys have a higher MOQ as compared to larger toys.

Some toys have an MOQ of one piece whereas others have as high as 1000 units.

However, you can negotiate the MOQ with your manufacturer.

Nevertheless, you have to keep in mind that it should be fair for both parties.

It’s difficult for Chinese manufacturers to lower their MOQ without them benefiting in one way or the other.

Therefore, you need to weigh options well so that your manufacturer agrees with your proposal.

What Materials are used for Toy Production in China?

Some of the main materials used to manufacture the different types of toys in China are not limited to;

• Plastic
• Wood
• Clay
• Metals
• Fiber
• Cotton

Keep in mind that chemicals might also be used in the manufacture of some toys.

Some of these chemicals include; lead, PVC, Cadmium, Chlorine, arsenic, and BPA.

Due to this, China has some regulations on the use of chemicals to ensure the toys produced are not harmful.

Also, it’s advisable to have your toys inspected just to confirm if your toys conform to the safety standards.

How does China Toy Market compare to Global Toy Market?

China is ranked the top country in the manufacture of toys as it produces 70% of the world’s toys.

When making global comparisons, China generates the most revenue out of toys.

In the year 2010, the export value of toys shot up to 29.4% as compared to 9.9% in the previous year.

In the same year (2010) the European toy market declined to third place.

China’s market can maintain its competitive nature due to factors such as; cheap available labor, availability of raw materials, and a variety of designs available among others.

As compared to China, it might be difficult for some global markets to achieve some of these factors as the wages might be higher.

Additionally, the availability of raw materials might be a challenge and that’s why China takes the lead.

Why do you need Freight Forwarder when Importing from China Toy Market?

A freight forwarder is someone in charge of making sure that all your shipping processes run smoothly until you receive your goods.

There are a couple of reasons why several importers choose to work with freight forwarders.

Some of them include;

• Cost-saving –Freight forwarders easily negotiate prices with carriers in turn securing the best prices for you.
• Versatility –Freight forwarders respond to unforeseen circumstances with immediate effect.

They work to make sure that they have met deadlines and the shipment process goes on smoothly.

• Guaranteed arrival time –Freight forwarding is a profession on its own and therefore freight forwarders ensure timely delivery of your goods.

From planning to transportation freight forwarders will handle your cargo until you receive it.

• Warehousing -In case of any delays in shipping, freight forwarders provide storage for your goods in a warehouse.

This also applies when your shipment lands in a foreign country.

• Custom clearance –With a freight forwarder, you don’t have to worry about passing your cargo through customs as they will have it done.
• Flexibility –Freight forwarders can quickly adapt to any changing situation. You can easily change your shipping options without much of a hassle.

To make the shipping toys from China easy and simple, Tj chinafreight will handle all logistics operations for you.

Whether you want free container, warehousing facilities or customs clearance, we are the best freight forwarder you can count on.

Before you buy from the Guangzhou furniture market, read this guide.

It answers all questions you have been asking about importing furniture from China.

Where is Guangzhou Furniture Market Located?

It is situated in central Guangdong province, China, about 30 kilometers away from Guangzhou business district.

It borders some of the flexible and vibrant cities, including Shenzhen, Hong Kong, and Macao, among others.

The market is approximately 80 kilometers from Hong Kong.

Why should you Buy Furniture from Guangzhou Furniture Market?

It is advantageous in many ways to source these products from the Guangzhou furniture market.

Some of the beneficial reasons for doing so include the following;

· Variety of Products

This market has countless furniture manufacturers and suppliers.

It is essential since it gives you a wide range of options to pick from when searching for an ideal one.

You can get any design of your choice, be it standard or customized.

·  Low Taxes

Most furniture products available in the Guangzhou furniture market are subjected to low taxes.

And this is quite deliberate since the Chinese government sees it as a way of attracting foreign markets.

In essence, buying from this market enables you to save quite a significant amount of money and increase your profit margin.

· High-quality Products

The variety of furniture products you find in this market are of high-end quality.

The artistry and technology used in designing and making the furniture here are top-notch.

The availability of raw materials is also in abundance, which makes it relatively difficult to compromise quality of the final product.

· Superior Infrastructure

The infrastructural development within and around the Guangzhou furniture market is top-notch.

Transport network and market malls are properly designed to meet the demands of business in this region.

It is vital since it enhances efficiency in regards to shopping and transportation of the products.

In the end, it reduces the cost of doing business, which translates to a better profit margin.

· Affordability

Most prominently, furniture products in this market are quite cost-effective in general.

You can always find the particular type you are looking for depending on your budget.

Furthermore, the overall cost of importing furniture from Guangzhou among foreigners is relatively low.

How Far is Foshan Furniture Market from Guangzhou?

The road distance is approximately 30 kilometers.

However, you can choose you to use a wide range of transport means to get to the Foshan furniture market from Guangzhou.

The available options include trains, long-distance buses, metro-bus, and taxi, among others.

The distance covered depends on the specific route the mode of transport you’re using pliers.

How do You Find Furniture Manufacturers in China Guangzhou?

There are different ways you can use to find ideal furniture manufacturers in Guangzhou, which -include the following:

· Online Search

Most manufacturers of these products in China have established various online platforms for their business.

This may include websites, web pages, and the use of different types of social media platforms.

You can thus search for the ideal ones on such platforms using the available online directories.

You’ll find and assess the available then select the most preferable, which suit your needs.

·  Referrals

You can choose to inquire from other buyers, especially those who frequent the market to refer you to an ideal manufacturer.

This is one of the most preferable means since, in many cases, it guarantees you of getting a reliable manufacturer.

· Visiting the Showrooms

You may as well decide to travel to Guangzhou to find the manufacturers in their factories and showrooms.

It is an ideal option, especially if you need a large quantity of furniture.

It is also a suitable method if you’re searching for customized designs since it enables you to present it to the manufacturers physically.

· Using Sourcing Agents

It is regarded as the best option you can explore when looking for furniture dealers in Guangzhou, China.

These can be individuals or companies with a specialty in sourcing for manufacturers within this city.

They are familiar with most suppliers offering different types of products, thus an ideal option to explore when in need.

How big is Guangzhou Furniture Market?

This market has coverage of 750,000 square meters, thus considered as the largest one in scale globally.

In this space, this market accommodates over 4,000 furniture dealers from home and abroad in this market.

It also hosts close to 200 modern furniture shops, over 1300 furniture manufacturers, and more than 50,000 people within its confines.

The figures clearly, show how big the Guangzhou furniture market is and the reason it is considered the world’s largest furniture market.

What are the Advantages of Buying from Guangzhou Furniture Market?

a) The market is centrally located within the city, thus making it easy to access it using different modes of transport.

You can use taxis, metro, train, and bus, thus giving you more options ideal for your needs.

b) It has over 4,000 furniture dealers and more than 1,300 furniture factories, which comes in handy in terms of variety. In essence, it enables you to choose from the various manufacturers to ensure you get the best deal.

c) There is flexibility in terms of MOQ since a variety of suppliers offer different terms. This enables you to buy furniture which meets your demands irrespective of the quantity.

d) The market offers over 40,000 different furniture designs.

This makes it easy for you to find the exact design you are looking for, whether for indoor, outdoor, office or kitchen, among others.

e) The furniture rates in this market are cost-effective. You can be certain of buying high-quality furniture at a competitive rate as long as you target the right dealer.

f) Shipping of the furniture products to your delivery destination is also efficient from Guangzhou market.

It is well inter-connected and has proximity to different infrastructural networks, including trains, roads, seaports, and airports, among others.

g) The dealers in this market also accept a wide range of flexible payment options. This is fundamental, especially among foreigners, since it eliminates payment inconvenience due to varying currencies.

Which Types of Furniture can you Import from Guangzhou Furniture Market?

They include the following;

• Outdoor furniture
• Living room furniture
• Dining room furniture
• Bedroom furniture
• Office furniture
• Storage furniture
• Hotel and restaurant furniture
• Kitchen furniture

Which are Best Luxury Furniture Manufacturers in Guangzhou?

They are several and vary depending on the specific type of furniture you are looking for.

Even so, some of the highly-rated manufacturers to consider in this region include the following;

• Guangzhou Mingzhen Mattress Furniture Co., Ltd.
• Guangzhou Jinggang Furniture Co., Ltd.
• Guangzhou Leadcom Seating Co., Ltd.
• Guangzhou Holike Creative Home Co., Ltd.
• Guangzhou Zhuolie industrial trading Co., Ltd.
• Guangzhou Topmedi Co., Ltd.
• Guangzhou Mige Office Furniture Co., Ltd.
• Guangzhou Okayaya Beauty Manufacturer
• Guangzhou Lianzheng Furniture Manufacturer
• Guangzhou CDG Furniture Co., Ltd.

How can you get Best Prices from Guangzhou Furniture Market?

You can use several interventions to obtain best rates when shopping from Guangzhou furniture market. The notable ways include the following;

·  Buying Large MOQ

Most manufacturers and dealers usually offer discounted rates for customers who purchase large quantity products.

It doesn’t necessarily have to be one type of furniture.

Instead, you may decide to buy several different furniture types as long as you are getting them from one dealer.

It becomes easier to negotiate for a better deal than when ordering a few quantities.

· Checking Different Furniture Malls

In Guangzhou furniture market, different malls stock and sell relatively the same products but at varying rates.

You need to figure out and explore the specific malls, which sell such items at lower rates.

You’ll notice in most circumstances; the quality is often the same only that each mall has a specific target market.

· Consider using a Sourcing Agent

Sourcing agents understand the dynamics surrounding Guangzhou furniture market.

They are familiar with all the malls within and their pricing for respective products.

Engaging and seeking their services enable you to get better rates since they know exact places to find the items.

Moreover, they have better negotiation skills and an advantage to warrant better discounts.

· Target the Trade Fairs

Guangzhou hosts the biggest furniture trade fair in the world known as the China International Furniture Fair (CIFF).

It provides the best setting for buyers to get all competitive discounts on almost all products in this exhibition.

Some exhibitors provide as high as 50% discount or more on specific furniture products.

Moreover, it also allows you to establish a good rapport with exhibitors and company agents for further engagement regarding pricing.

Do you need China Sourcing Agents when Importing from Guangzhou Furniture Market?

Yes, it is quite important to seek their services, but it is not compulsory.

These agents play a fundamental role in facilitating the sourcing of different furniture products in Guangzhou.

They understand various elements surrounding the sourcing of furniture products from this market.

The sourcing agents also have contacts of most of the reliable and affordable dealers in the Guangzhou furniture market.

It thus becomes easy to fast-track the sourcing process, which is vital in enhancing efficiency and convenience when importing these goods.

How do you Ship Furniture from Guangzhou to Amazon FBA?

It is a relatively and easy process as long as you implement applicable stipulations and meet the conditions.

The first step in attaining this is by creating a shipping plan.

This plan enables you to specify the particular furniture products you want to send to Amazon FBA.

It also allows you to specify the quantity of every item, shipping method, and carrier information.

Once you complete and submit your shipping plan, you can use a shipping queue on Amazon to track your shipment.

The second step in this process is preparing your furniture.

At this point, confirm the packaging requirements to ensure you comply with Amazon’s policies.

Select the prep required depending on the type of furniture you’re shipping.

You’ll find the details on ways of preparing each product to prevent incidences of product returns.

The third step is labeling the furniture products you’re shipping accordingly.

Amazon FBA centers only accept correctly labeled items.

It helps to facilitate tracking into Amazon’s fulfillment centers.

Then double-check to ensure every detail is captured correctly.

Remember, the moment it is accepted and approved, it becomes difficult to edit the information.

So you can go ahead to prepare your Amazon FBA shipment at the prepare shipment page and confirm all the final details.

Send the shipment, and once it is received, you’ll get a notification alerting you about the same.

How do you check the Quality of Furniture from Guangzhou Furniture Market?

You have to consider a wide range of elements including the following;

Raw material – It should be of high quality since it determines the final product.

You need to have a specialty or experience in matters of furniture to tell between inferior and superior raw material quality.

Artistry – The creativity put on the final product has to be top-notch.

High-quality furniture has epic artistry in terms of general design and final finish.

Price – Ideally, most furniture items, which are cheaply sold in this market, happen to be of relatively inferior quality in all aspects.

Therefore, chances are the higher the unit price, the higher the quality and vice versa.

Weather-resistant – A quality furniture can withstand extreme weather conditions for a long time without losing its substance.

Quality marks – The Chinese government and local authorities have agencies, which set quality standards for furniture products.

These agencies approve quality units by imprinting quality marks on them.

How much do Furniture Cost in Guangzhou Furniture Market?

The cost of furniture products in Guangzhou furniture market varies based on different prevailing factors.

Nevertheless, the price of furniture in this market is substantially lower compared to retail prices in home country.

And this justifies a trip to China to purchase these products.

First, the type of furniture you’re purchasing determines the precise amount of money you’ll pay to acquire the product.

Remember, these products come in various varieties; hence they pricing tends to differ.

The quantity of furniture you’re purchasing from Guangzhou is another aspect, which influences cost.

In many instances, a buyer purchasing more pieces of furniture tend to get a better discount than one buying fewer pieces.

The design and type of raw material also define the cost of furniture in Guangzhou furniture market.

High quality and sophisticated designs are relatively costly than simple designs.

Also, the specific mall or dealer you are buying from determines the cost of these items.

Some malls are targeting more expensive markets, whereas other target middle and low budget market, quality notwithstanding.

And most prominently, the buying timing is also a cost-determinant factor.

Purchasing during events such as trade fairs allows you to buy these products cheaper than ordinary days.

How will Freight Forwarders help when Importing from Guangzhou Furniture Market?

Freight forwarders have invested in building solid relationships with different players in this industry.

This leads to expeditious shipments and likelihood of favorable shipping rates hence reducing operational costs.

They help in securing cargo space and ensuring you get cost-effective shipping rates for your furniture from Guangzhou.

They offer customs brokerage services, which entails meticulous attention to details and wealth of knowledge.

This provides you with peace of mind and convenience, knowing all aspects are taken care of.

They help coordinate all entities involved in supply chain to ensure successful shipping and delivery of these products.

They undertake administrative burden on your behalf by ensuring each paperwork is accurate and submitted at the right time.

This also helps to enhance the seamless importation of your goods from Guangzhou furniture market.

Which Mode of Transport will you use to transport Furniture from Guangzhou Market?

There are several shipping options you may consider when transporting products from Guangzhou furniture market.

Some of these options include the following;

Express shipping – It is the use of expedited methods to ship such products to the delivery destination within the shortest time possible. Mostly, it ranges from 8-48 hours for orders to be delivered.

Trucking – It is the use of trucks to transport the products to the ideal destination. It is a suitable shipping method for orders within the country and may take between 1-7 days.

Rail freight – It involves using railroads and trains to ship these products to the delivery destination. Guangzhou furniture market is located in a prime area, especially for easy access to rail freight.

Airfreight – It is also a common mode of shipping you can utilize when shipping goods from Guangzhou furniture market.

Sea freight – It involves use of water vessels to transport goods consolidated inside containers. It is the dominant mode of shipping for most furniture products from Guangzhou market.

Which are the Main Furniture Malls in Guangzhou?

• Red Star Macalline
• Shunde Huihui Furniture Shopping Mall
• Zhongjiang Furniture Shopping Mall
• Classical Shopping Mall

Which Documents do you need to Import from Guangzhou Furniture Market?

They could be quite a number, but the most important ones include the following;

• Commercial invoice
• Packing list
• Bill of Lading
• Bill of Exchange
• Letter of credit/Purchase order
• Insurance certificate
• Country of origin certificate
• Import license
• Bill of entry

How much does it Cost to Ship Furniture from Guangzhou Furniture Market?

There is no standard cost for shipping furniture from Guangzhou furniture market.

It depends on the mode of transport you’re opting for shipping the items.

Typically, sea freight is the popular means of shipping furniture from Guangzhou to a most international destination.

However, for regional or local destinations, you can utilize other means such as rail freight and trucking.

In general, sea freight shipping is relatively cheaper than all other available options for transportation.

The other determinant factor is the size and volume of the furniture you are shipping.

Most carriers often charge freight charges depending on the weight and size of the shipment occupies.

Also, this cost depends on the distance from Guangzhou furniture market to the delivery destination.

The shorter the distance, the lower the rates, and the longer the distance, the higher the rates.

And most prominently, it depends on the particular carrier you choose for these services.

Different shippers charge varying rates for this service based on numerous factors.

You, therefore, need to figure out the ideal one, which meets your budget and demands by evaluating terms of all available ones.

What is the MOQ in Guangzhou Furniture Market?

Every supplier in Guangzhou furniture market has its terms and conditions regarding the MOQ for purchasing products.

You need to inquire from specific suppliers to determine the terms surrounding MOQ for each.

If the required quantity is below the MOQ of a certain supplier, you can as well look for those who can compromise.

Most suppliers in Guangzhou furniture market are relatively flexible.

And this is important since they cater even for small-scale customers in need of few quantities.

In a nutshell, there is no specific MOQ tagged on purchasing furniture in Guangzhou furniture market.

Ensure you find out prior to enable you to make an informed decision.

What should you consider when Buying Traditional Chinese Style Furniture from Guangzhou Furniture Market?

Size of your home – Some of these traditional Chinese style furniture have unique shapes and designs.

Therefore, you need to consider whether or not the specific type you are choosing fits your house.

Features – Make sure the features of this type of furniture suit your needs.

For home furniture, ensure they suit your needs and your loved ones too.

Consider the height, size, design, and compatibility, among others.

Durability – Of course, most of these old-style designs tend to be relatively durable.

However, you should find out whether or not they can withstand other conditions without dilapidating.

Color – It is a vital aspect to look into when buying antique Chinese style furniture.

The color should complement the tone of your room and decorations as well.

Comfort – Always choose comfort over anything else when buying the vintage traditional Chinese furniture.

Consider the ergonomics of the furniture to make your home welcoming without compromising on comfort.

Cost – The money you’re spending to obtain this type of furniture needs to be within your budget.

In most cases, traditional Chinese furniture designs are made using high-quality raw materials.

And this influences the price for a finished product.

Can you find Suppliers from the Guangzhou Furniture Market on Alibaba?

Yes.

Alibaba partners with a lot of verified Guangzhou furniture market suppliers.

They are quite a several on Alibaba and offer different types of furniture, both antique and contemporary designs.

Such suppliers target the international market through Alibaba as the means of facilitating the selling of such products.

You only need to know the name or search for the same on the directory on this platform to find your preferred one.

Which Payment Methods will you use in Guangzhou Furniture Market?

Letter of credit – This common among huge importers. The importer’s bank issues it as a commitment on behalf of the buyer.

Once the seller meets the stipulated demands, the importer’s bank releases money to the vendor’s bank.

Open account – It is also common among frequent large-scale furniture importers.

It involves the shipping of the items to the delivery destination, and payment is done after a particular period.

It could be 30, 60, or 90 days depending on the agreement between involved parties.

Credit/debit card – It is a payment option where the buyer’s account is deducted of a specified amount of money and credited to the supplier’s account. It is convenient, safe, and faster.

Online payment – It is using e-wallets to pay for the goods. There are several e-wallets you can use, such as PayPal and Alipay.

However, both users must have these e-wallet accounts for transactions to take place.

Mobile payment – It involves the use of mobile money by transferring from the buyer to the vendor.

In China, WeChat is the popular mode of mobile payment you can use when paying for furniture.

It is safe, real-time, and convenient.

Cash payment – It is basically about paying the seller using hard money in exchange for the goods.

It usually happens among small-scale buyers in different types of malls within this market.

How long will it take to Ship Furniture from Guangzhou Furniture Market?

It is mainly contingent on your preferred type of shipping.

Different shipping options take varying duration to get the shipment from Guangzhou furniture market to your delivery destination.

Furthermore, the shipping distance also affects the duration your goods will take to your destination from this furniture market.

For instance, if you opt for air, it can take between 1-7 days, depending on a wide range of prevailing circumstances.

Rail freight may take up to 30 days, also depending on the route, number of stoppages, and the distance of ultimate delivery destination.

Sea freight, which is more dominant for shipping furniture from Guangzhou furniture market, may take up to 60 days.

Moreover, the duration is also determined by the specific carrier you are using to ship your consignment.

Do you need Insurance when Shipping Furniture from Guangzhou Furniture Market?

Yes.

It is quite important since shipping furniture from Guangzhou furniture market means your goods are exposed to many risks.

Obtaining an insurance cover for these goods help in safeguarding them from any imminent damage or loss.

It gives you peace of mind since you are guaranteed compensation in case of loss or damage to your furniture.

However, you need to weigh in and determine whether it is commercially-practical to obtain insurance cover.

If you are shipping a few furniture items, it won’t necessarily make sense to get insurance cover.

At Tj chinafreight, we make importing furniture from Guangzhou furniture market easy and simple.

For all your freight forwarding needs, Tj chinafreight is here to help you – contact us now.

I know you want to learn how to buy from Alibaba.

That’s why this guide will answer all questions you have been asking about importing from Alibaba.

From the basic definition, checking quality, avoiding scams, shipping options to methods of payments – you will find everything here.

Keep reading to learn more.

What is Alibaba?

It refers to a wholesale marketplace, which allows sellers and buyers to sell and buy different types of products in bulk, globally.

It is regarded as one of the largest e-commerce websites in the world where buyers can source and buy different commodities affordably.

Alibaba has tons of suppliers, making it easy for you to buy single, numerous, or assorted items.

It depends on how you negotiate with the specific suppliers you are dealing with.

The platform allows you to interact directly with the manufacturer, which is beneficial since it facilitates easy and speedy delivery of commodities.

Moreover, it enables you to negotiate on competitive discounts and, at the same time, obtain custom products.

What is the difference between Alibaba and AliExpress?

There is a thin line between Alibaba and AliExpress.

Both are owned by the same company, but each operates differently with a specific purpose.

Each entity is also designed for a different target audience.

One major difference is Alibaba operates of a business to the business model and AliExpress works on a business to consumer model.

In short, with Alibaba, you’ll be dealing with manufacturers directly for the purchase of products in bulk.

On the other hand, with AliExpress, you can source products as low as a single piece directly, albeit at slightly higher rates.

AliExpress thus acts as a retail unit to Alibaba’s wholesale.

Therefore, you’ll find many potential clients using the former for sample products before placing larger orders on the latter.

Another difference is Alibaba offers the lowest unit cost for every product purchases on wholesale terms.

AliExpress, on the other hand, is ideal for newbies testing new products suitable for their niche.

Alibaba allows you to create custom products using your designs to suit your demands.

In contrast, you can purchase items on AliExpress individually at relatively costly rates.

Alibaba is an ideal platform for frequent and experienced customers with an already established market.

This helps in reducing the risk significantly.

By contrast, AliExpress is ideal for newbies trying out with different types of products, running a passive income trade.

Who can Buy from Alibaba?

Anybody can buy items from Alibaba as long as you meet the MOQ.

It can be an individual, company, or government.

Alibaba has a directory, which allows anybody or any entity to purchase directly from specific manufacturers.

What are the Benefits of Buying from Alibaba?

It is beneficial in numerous ways to buy from Alibaba.

Some of these advantages include the following;

a) It provides an online directory for a wide range of manufacturers you can reach out to and purchase different types of products from.

The benefit here is it gives you broad options of suppliers to source from.

b) It allows you to design customized products, which suit your demands at affordable rates.

c) It has millions of products to select from, thus enabling you to have broad alternatives when looking for a suitable commodity.

d) It is a platform, which offers the lowest pricing when purchasing goods on wholesale. It thus makes it possible for you to increase your profit margin.

e) It makes it easy for you to evaluate the manufacturers or suppliers you’re dealing with.

It gives you the option to determine the type of supplier, check reviews, and a number of transactions carried out.

f) It allows for monitoring of the quality of items a customer is ordering before dispatching.

And this is fundamental since it prevents inconveniences and costs arising from returns.

g) It gives you control over the packaging and shipping of your product.

Therefore, you can be certain the products’ packaging, and specification criteria meet your specific demands.

Which Products can you Buy from Alibaba?

You can buy almost any item from Alibaba as long as it is legal in your country.

There are millions of different commodities on this platform.

Alibaba connects you to all sorts of manufacturers and suppliers selling all types of products.

The products include electronic components and supplies, healthcare products, beauty, and personal care and fashion items.

You can also buy equipment and machinery, automotive parts, home improvement tools, computers, and gaming gadgets, among others.

In short, there is a myriad of items you can buy from this eCommerce site.

What is the Step by Step Process of Buying from Alibaba?

It is a detailed process on paper but quite easy practically. These steps include the following;

1. Set up an Alibaba Account

The first thing to do is set up your account on Alibaba.

You need to use your credentials such as user ID and password to log in to this platform.

It is quite easy and direct since the interface is in English, which you can switch to your preferred language if need be.

2. Finding a Niche on Alibaba

Before thinking of purchasing any item from Alibaba, you ought to validate your niche.

Finding a niche enables you to identify trending products within the category you are looking for.

3. Find the Ideal Supplier

The moment you identify and find a niche category for your products, the next step is finding a suitable supplier for the items.

If you’re a frequent customer on Alibaba, it would be ideal to always have at most three core suppliers.

helps in strengthening a business relationship, reliability, and cohesive product collection.

If you’re a newbie, you can use several techniques to find the ideal supplier on this platform.

First, you can run a suppliers’ search at the homepage of this e-commerce website.

Type the specific product you’re searching for and narrow the search further to get the most suitable suppliers for your needs.

Under the Sort By option, you can choose by “response rate”, “Transaction level” or leave it at its default’s “Best Match”.

The “Transaction level” option is recommendable when seeking a supplier with the highest processed orders.

You can also opt for a “Response rate” if you’re looking for a supplier to build a good rapport with.

Essentially, your choice when narrowing options is dependent on your needs as far as dealings with suppliers are concerned.

Once you identify one, there is a need for ensuring you do due diligence to confirm you’re dealing with a legit and reliable party.

Some elements to look into in a supplier include ratings, reviews, past transactions, and modes of operations, among others.

4. Selecting the Product

This is the next step after finding the right supplier.

Ideally, it can be quite challenging to navigate the website to select products you want to sell from Alibaba’s platform.

You have to be extremely keen on this aspect by matching the products you’re looking for to factories on this eCommerce website.

An essential element to look into at this stage is unit price against MOQ.

It helps you to figure out whether or not your budget is within limits.

5. Get in Touch with the Suppliers

When you’re on Alibaba’s product page, you’ll see a relatively large orange button labeled “Contact Supplier”.

This button enables you to get in touch with the sellers before you place your order.

It is not compulsory to contact the seller before placing an order.

However, it would be an ideal opportunity to inquire and find out clarification regarding particular concerns.

The concerns could be about asking for a sample for quality assessment, or MOQ, or price negotiation or any issue you’d need clarification on.

6. Order Confirmation

After doing all the necessary formalities, including order payment, the items are sent to your delivery destination.

Upon receiving them, you’ll need to evaluate the quality to find out whether or not they match the specifications.

While at it, you are advised to assess and test each product you receive.

Verify if they are in good condition as soon as you can.

Also, countercheck the quantity to ensure it matches what you’d ordered for.

Of course, it can be quite challenging, especially where the order has a higher volume.

Even so, you can task your team members with this responsibility.

Furthermore, ensure the product packaging meets your requirements.

Pay attention to how every item was packaged and determine if it was suitable.

Once you assess the consignment, counteract accordingly if there is a need to.

For instance, if you find damaged items, you may want to raise a complaint about a possible return.

If there was a short landing, you could as well communicate to the supplier for possible replacement.

Basically, that’s the step by step process involved in purchasing items from Alibaba.

Once you start doing it practically on the website, you’ll notice it is easier than it sounds herein.

How do you Find Trustworthy Suppliers on Alibaba?

Some of the ideal ways you can use to find a reliable supplier include the following;

• Select a gold supplier – On Alibaba, you can filter the options to allow you to find gold suppliers only.

These are the type of suppliers who often subscription fees to Alibaba, thus tend to be more reliable.

It means Alibaba has verified the authenticity of a gold supplier, thus worth transacting with.

• Deal with a manufacturer where possible – On Alibaba, you’ll find two categories of suppliers; Trading company and manufacturer.

A trading company is more or less like a third party involved in listing and selling of commodities they do not produce.

• Manufacturer, in contrast, make the products they are selling. In most cases, manufacturers tend to have a limited and more niche product variety. The manufacturer is more reliable, organized, and cost-effective.
• Check the response rate – When searching for items on Alibaba, always check the item card showing additional information.

Go for a supplier with a response rate of over 70%.

A less responsive supplier is a sign of lack of seriousness or enthusiasm; hence can easily inconvenience you.

• Check if the supplier is verified – From the supplier’s homepage, you can be able to tell whether or not they are verified. The more verified details, the better chance to transact business with the dealer.
• Request multiple samples – Always ask for samples from the supplier before making a large order. Pay for the cost, and once you get them, assess to determine whether or not the quality meets your demands.

How do you avoid getting Scammed when Buying from Alibaba?

To avoid being scammed on this platform, you should be cautious of any supplier portraying characteristics such as the following;

• Offering extremely low prices – Mostly, you’ll find multiple suppliers selling similar products, but the price disparity will always be reasonable among all.

However, if you find one offering a similar product at let’s say half the price, that should be a red flag.

• Unwilling to send samples – A trustworthy supplier will always be ready to send sample products as long as you can pay for the same.

If you persistently ask for samples, but the supplier seems unwilling, avoid such since that’s a sign of a con.

• Rigid payment methods – Alibaba is an international ecommerce platform. It means suppliers expect to get customers from various nations.

Avoid any supplier who’s hell-bent on a specific mode of payment.

• Unwilling to accept Alibaba Trade Assurance – Alibaba Trade Assurance protects your transaction; hence you can easily claim money in case the deal doesn’t go through as expected.

Deal with any supplier unwilling to head this direction with a lot of caution.

• Unverified account – Since Alibaba offers a platform for thousands of suppliers, it becomes easy for anyone to create an account.

It makes it easy to be scammed even with “ghost supplier”. Therefore, always go for suppliers with verified accounts.

• Unregistered address – A reliable supplier should have a registered address, contact information, and in some cases, a website platform.

Avoid dealing with suppliers who regularly change their contact information, such as addresses and phone numbers.

Buyers are not Alibaba’s customers.

Instead, Alibaba makes money by selling membership to sellers or suppliers.

It is thus apparent it’s the sellers they’ll always keep on their side.

In essence, it explains the reason you need to be vigilant when looking for suppliers.

Can you buy from Alibaba to Amazon FBA?

Yes.

The supplier, through a third party, will place shipping labels, package and inspect the products before leaving the warehouse.

Once your commodities are shipped to Amazon FBA warehouse, you’ll take care of the storage and related costs.

You are at liberty to decide whether to ship all products on Amazon FBA warehouse or allow Amazon to distribute your stock.

Prominently is to understand Amazon FBA has stringent rules regarding quality, labeling, and documentation.

What is the safest way to pay Alibaba Suppliers?

Different suppliers accept varied forms of payment on Alibaba, depending on a wide range of circumstances.

There are several payment options you can use for paying suppliers on this platform.

But only a few are regarded as safe, especially among legit suppliers.

They include the following;

· PayPal

This is an international online payment system for electronic money transfer from one user to another.

It is an electronic alternative for conventional paper payment methods such as checks and money orders.

It is safe, instant, and convenient.

However, both parties need to have PayPal accounts for the transaction to go through.

It converts foreign currencies at a fee and also can wire funds between users’ bank accounts.

· Alipay

It is a third-party online and mobile payment platform used in a wide range of money transactions.

It enables users to conduct transactions directly from their registered mobile devices.

It is a relatively safe payment option, which you can use to move funds between buyer and merchant accounts.

· Credit Cards

It is a mode of payment, which allows the buyer to pay for items without using cash.

The customer uses their cards, which has money to make purchases.

The buyer, therefore, transfers money from their account to the merchant’s account electronically using the card.

It is instant, safe, and convenient.

What is Alipay, and How does it Work?

It is a third-party mobile payment app used for transferring money from one user to another one.

It offers e-wallet service on a smartphone for fast and convenient payment methods.

You can also use Alipay for receiving international money from friends, relatives, and acquaintances in overseas countries.

It is easy to use since you only need to download the app on your smartphone and scan the QR code to complete your payment.

Another option is logging in to your Alipay account online and complete the transaction from that end.

Once the payment is successful, the status will appear as “Payment Sent” on the interface.

How do you Contact a Supplier on Alibaba?

There are four ways on Alibaba you can use to contact the supplier.

The product page on Alibaba has a large orange button labeled “Contact supplier”.

This button allows you to contact the supplier before making and actualizing your order.

The second option is clicking the “Get Latest Price” button, which is often quicker and a bit easier.

The downside of this option is most suppliers are unlikely to pay attention to messages from this channel.

The third alternative is using the “Start Order” button. Even so, this order is only sensible if you’re sure ultimately, you’ll order from the supplier.

In most cases, this is never the case, especially for first-timers.

The last option, in this case, is using the “Chat Now’ channel.

It is a comparatively, effective method for contacting the supplier directly.

However, it can be limited by time differences between the seller and buyer.

And this makes it difficult to coordinate or have effective communication.

Therefore, the “Contact Supplier” option stands out as the best channel for contacting the supplier directly.

It is more or less like sending an email, but this time on the Alibaba platform.

Upon clicking the button, you’ll find a space for typing your message to the supplier.

However, it is recommended to always be brief and straightforward in the message.

You’ll always receive a notification message on your email in case of a response from the supplier or their representatives.

What is Alibaba Shipping, and How does it Work?

It refers to the transportation of commodities you buy from suppliers in China to your preferred destination through Alibaba.

Alibaba acts as the middleman in picking the goods from the supplier’s warehouse upon payment of the order to the shipper.

In essence, Alibaba coordinates the delivery of the consignment from the supplier to the buyer.

Primarily, Alibaba cooperates with different shipping agents to facilitate the transportation of customer’s items from various suppliers to customers.

Once the customer provides the quantity of the products he/she is buying, the Alibaba agent calculates the weight and volume.

This information is then communicated to the shipping agent, who, in turn, provides a quotation for the shipment.

Then Alibaba will communicate to the customer to facilitate payment and enable shipping of the commodities to the delivery destination.

Mostly, Alibaba usually offers reasonably low charges than what the shipping agent quotes.

Once the customer pays, the products are transported to the destination using the preferred shipping mode.

Does Alibaba offer Door to Door Shipping?

Yes, albeit indirectly.

What happens with Alibaba is that the customer chooses their preferred mode of shipping and delivery when placing the order.

Alibaba, through your seller, coordinates with the ideal courier service such as DHL, FedEx, TNT, EMS, or China post, among others.

It is the courier service that delivers your consignment to your doorstep.

In fact, Alibaba door to door shipping is convenient.

What other options are there for Shipping Goods from Alibaba?

They are quite a number, but the major ones include the following;

Airfreight – It involves the loading of your goods onto a cargo flight for transportation.

This option is relatively cheaper than using courier services, albeit taking more days for you to get the consignment.

It requires you to work with an air fright agent, it requires relatively less paperwork and enhanced security for your cargo.

Ocean freight – It involves using water vessels to transport the commodities from country of origin to country of destination.

Ocean freight is the cheapest mode of shipping goods from Alibaba, but the delivery time is a bit longer.

It is also ideal for shipping large consignment, especially when working within a tight budget.

Ensure you use FOB shipping incoterms in ocean freight to avoid any hidden costs.

Trucking – It is the use of cargo trucks for hauling goods purchased from Alibaba

It is ideal for mainland transportation, especially if the delivery destination is within proximity to the supplier.

Rail freight – It involves use of a cargo train to ship cargo from Alibaba. It is relatively faster than ocean freight and reasonably affordable.

It is also ideal for large consignment since one cargo train can haul an equivalent of up to about 400 trucks.

It has a safety record and helps in preventing congestion on the highways.

What are the Disadvantages of Buying from Alibaba?

The common disadvantages include the following;

• The MOQ for some products can be relatively high, which means the upfront cost will also be higher. It is advantageous since it transfers the risk to the buyer.
• Some niches pose difficulties since they have disparity between countries. For instance, in clothing and fashion, the Asian sizing is usually different from American sizing. This can lead to confusion for your key demographic.
• In some instances, the product photos tend to be different from the actual item you receive upon ordering. This makes it hard and frustrating to sell to the end-users.
• Buyers are likely to face legal actions, especially when selling products from Alibaba, which are branded, and they’re not officially accredited.
• In some cases, you may find faulty products or a short landing, which can be inconveniencing since the return policy can be frustrating.

Moreover, there could be instances of quality degradation, particularly in subsequent shipments.

What are the Minimum Order Requirements for Alibaba Suppliers?

It varies from one supplier to another.

However, most suppliers on Alibaba are always willing to negotiate with buyers on the ideal MOQ based on different factors.

It usually varies also depending on the unit cost for purchasing the product.

In many instances, most manufacturers will always try to find a balance between unit price and order quantity to determine suitable MOQ.

How do you Verify Company Credibility on Alibaba?

Alibaba verifies all credible seller accounts.

Before getting the verification badge, the seller has to attain certain stipulated conditions.

One way is by checking whether the supplier has a business license registration number.

Typically, Alibaba often verifies business licenses for each supplier every year.

It thus means the registration number of a company’s license is true.

The other way is by checking whether the company agrees to Alibaba Trade Assurance policies.

It shows commitment and goodwill from the seller’s perspective since, in most instances, this serves to protect the buyer.

You also need to obtain reports from the Assessed supplier.

This is one inspected with third parties, and you can download all the relevant verification documents regarding the same.

There are several websites, which you can use to verify the legitimacy of the supplier on Alibaba.

Most of these websites are coded in Chinese, so it becomes easier if you’re familiar with the language.

If not, you may need to translate with Google Chrome web browser.

These websites include China’s Commerce Ministry Database, CECIPS, QiChaCha, and China’s General Administration of Customs Database.

Which is the Best Incoterm to use when Buying from Alibaba?

Free on Board (FOB) is the arguably the best shipping incoterm when sourcing goods from Alibaba.

FOB is more secure and competitive than any other incoterms, including CIF.

I know you’re probably wondering what HS Code China is.

Or maybe, you’d like to know why the HS code is important when importing from China.

Well, this guide will make everything simple for you.

It will also show you how to benefit from understanding HS Codes.

Keep reading to learn more.

HS Code China Definition

It is an acronym for the Harmonized Commodity Description and Coding System.

It refers to the internationally-standardized system of classifying traded products by names and numbers.

In simple words, HS code is a term used in global trade language as an element, which brings standardization to international trade.

It thus explains the reason HS code is necessary not only in China but in international trade as well.

This system was designed in 1988, but at the moment, it is maintained by the World Customs Organization.

Understanding the Structure of HS Code China

HS Code is used internationally as one of the standardized tools for global trade.

However, its structure often varies from one country to another.

Ideally, in China, the HS code has 10 digits.

However, the contracting parties must use at least 4-digit and 6-digit provisions to ensure harmonization.

The four and six-digit provisions are international rules and notes, but it is acceptable to adopt additional subcategories and notes.

The structure of HS Code in China thus encompasses the following elements;

· Section

It is the place where all the HS code classification process begins.

It broadly classifies the commodities into 22 main categories.

· Chapter

In China, the 22 main HS code sections are subsequently subdivided into 98 chapters.

These 98 chapters are restricted to national use and temporary modifications.

The two front numbers denote the chapter code.

Within every chapter, there is a chapter note, which describes different products falling in various categories.

It also offers definitions of what the HS codes describe.

· Heading

It dictates the particular category within a specific chapter.

It is necessary to determine the most appropriate heading, which describes the product accurately.

You should never move on further when classifying goods until you are certain the heading code of your choice is suitable.

· Sub-heading

It is defined by the last two digits of the HS code.

These numbers are more specific in describing the subcategories of the product.

The sub-heading drill down to finer details of the commodities imported.

In China, the HS code has about 5000 subheadings.

· Country Statistic Code

In China, you can use additional 2-4 digits for particular categorizations.

Specific local governments modify the final 2-4 codes.

It is essential because it provides flexibility for local customs authority to modify its HS code to meet local requirements.

These digits are also essential in tracking particular or several products where the first 6-digits may unable to do so.

The HS code structure is logically and legally arranged.

It also has well-defined rules to ensure it realizes uniform classification worldwide.

Knowing 10 Digit HTS Code

Typically, close to 98% of commodities in international trade are classified in terms of HS.

This code reduces costs related to import and export since it doesn’t require any translation.

HS code has 99 chapters, which cover 21 sections.

The code consists of 10 digits derived from the chapters and the sections.

Let’s take 1704.90.10.00 as an example to understand the tenets of the 10-digit HS code.

In this case;

• 17 represents chapter 17 of section IV. Usually, this would include beverages, tobacco, prepared foodstuff, vinegar, and manufactured tobacco alternatives.
• 04 represents sugar confectionery
• 90 represents sweetmeats or confectionaries, which are ready for consumption.
• 00 represents candied nut.

In a nutshell, the HS code 1704.90.10.00 refers to candied nuts.

In this case, here is how the code is broken down form better understanding;

1704.90. – The first two digits define the chapter of the HS nomenclature.

1704.90. – The second two digits represent the heading within the specific chapter.

1704.90. – The last two digits identify subheadings within the chapter.

So 1704.90.10.00 HS code is the 10-digit classification code as administered by a particular country involved in international trade.

But in that case, the first six digits; 1704.90 are the HS codes.

The next two digits after the first six digits; 1704.90.10.00 identify the subheading of the HS code.

They come in handy in establishing custom rates.

The last two digits, 1704.90.10.00, refer to the statistical suffix, which collects trade data and not necessarily classifying the product.

Stat suffix needs to be accurate when required.

And if it is not required, the last digits can as well be 00 as indicated in this example.

Notably, the first six digits are standard globally.

You can never change them irrespective of the country the products are originating from.

On the other hand, the last four digits can be modified from one country to another.

Benefits of using HS Code for Shipping

The advantages of using HS code for shipping include the following;

a) Facilitates Proper Collection of Taxes

The code allows the government through the customs authority to identify imports and exports through a country’s borders.

It also allows the customs officials to categorize commodities in a global system used for customs clearance.

The clearance official uses this code to submit it to the particular customs in the country of import.

This then allows for confirmation of import duty rate or tariff payable when importing in a country.

All these enhance the strategic collection of import/export duty, which is vital in determining the economic growth of a country.

b) Improves Ideal Data Reconciliation

Application of HS code is universal, and this enables carrying out of effective data reconciliation readings.

Ultimately, it allows the concerned parties to determine the loopholes and areas of improvement.

c)  Effective Product Classification

The code contains detailed information and a description of the products.

It thus makes it easy to use the headings and subheadings as building blocks for classifying other products.

d) It is a Universal Trading Language Tool

The HS code has a legal text, as well as comprehensive explanatory notes.

Such details ensure there is maximum consistency in terms of interpreting the definitions of commodity groups.

The essence of this is it creates a global language, which is applicable for trade negotiations and also in commercial practice.

e)  It improves the Globalization of National Economies

It allows for international comparability of trade statistics, specifically at the 6-digit level.

In essence, this helps to enhance the detailed analysis of global trade as well as the globalization of different national economies.

f) It is a Demonstration of Complying with Legal Requirements

Product classification is a legal responsibility among all importers and exporters.

The government has set vital structures to ensure all the traders receive updated HS code as well as accurate data relevant to the particular industry.

Role of HS Code China in Import Business

HS code plays a critical role in the overall import business in China.

Other than the classification of the commodities, here are some of the roles of this digit;

Controlling of Import and Exports

The HS code is necessary for regulating the importation and exportation of a wide range of products.

It thus allows the government to protect local manufacturers from unnecessary competition.

This happens when the government restricts the importation of certain products, which are also produced with the country.

It also enables the government through its agencies to prevent depletion of products in case production is scarce.

This happens, especially when the level of production of a particular commodity diminishes due to various reasons.

· Determining Customs Tariffs

The HS codes allow the Chinese government authorities to determine the specific tariffs to apply to certain commodities.

This is vital because it makes it possible for the government to raise or lower tariffs on specific goods depending on market requirements.

· Product Testing

The GB standards, as well as product testing applicable to your products, are facilitated by the use of HS codes.

Ideally, it enables the government to determine the right type of product testing products that need to comply with based on the applicable HS codes.

· Collecting Data and Statistics of Trade

HS codes are fundamental in the collection of statistics and data revolving around the trade.

It is a critical role, which a country needs to understand when it comes to its economic wellbeing.

In that sense, the government can use the data and information collected to control imports and exports accordingly.

It also enables the authorities to determine the necessary areas for improvement if need be.

· Determines the Shipping Process

Product classification using HS code is possibly the last hurdle, which commodities face before hitting the ultimate finish line in the shipping process.

It thus means the code has a significant impact on determining the efficiency of the shipping process of commodities from China.

How to use HS Code Finder

When using HS code finder, there are three major approaches you can use to find the particular code of a product.

These approaches include the following;

· Searching by Product Name

In this case, you’ll need to know the name of the product.

Once you type it, you’ll find several recommendations of the most relevant 4-digit HS code.

If the recommendations do not contain the correct HS code hit search to allow you to get all the results.

You’ll need the click on 4-digit code to obtain six and eight-digit HS codes details.

The information is what you’ll use for purposes of import-export and also for establishing the GST rates.

· Searching by HS Codes

In this case, you need to type the first two or four digits of the HS code.

Then click on the ideal result to attain more details regarding the HS code.

· Searching by Categories

HS codes are categorized into between 21-23 broad sections under all categories depending on a specific country.

In this case, you’ll need to navigate from this menu to 2, 4, 6, and 8-digit HS code, respectively.

You’ll then find the GST rates of the HS codes by clicking the 4-digit code.

Here are some useful links you can use to find HS Codes:

i. Find HS Codes

ii. HS Codes Lookup

iii. HS Code Finder

iv. HTS Search

Why HS Code is A Requirement by China Customs

In China, the government requires products to have HS code due to several reasons including the following;

· To Regulate Importation and Exportation of Goods

This is necessary since it enables the government to make an informed decision based on the respective date.

China, as one of the leading manufacturing hubs in the world, needs to determine the specific types of products they export and import.

This data allows the responsible authority to control the commodities as a way of enhancing moderation.

Therefore, this code makes it possible for proper classification of products exported and imported through Chinese boarders.

·  To Effect on Duty Rates

HS codes directly affect the duty rates of imports and exports.

In China, failure to assign this code or even providing incorrect ones can be commercially risky.

It is thus necessary to understand the duty tariffs and other vital elements revolving around the entire shipping process.

· Taxation

The Chinese government uses HS code to set import and export tax of commodities accordingly.

In essence, it enhances revenue collection for the country, which is vital in steering its economic growth and wellbeing.

· To Draft Trade Policies

The HS code guides the government in making sure it comes up with feasible trade policies to implement with her partners.

The trade policies ultimately increase the levelheadedness of ensuring seamless trading operations between the countries.

· To Set Freight and Transport Tariffs

The HS code is also essential in ensuring the government regulates the tariffs surrounding freight and transportation of goods.

This allows the players in the industry to have a clear picture of expectations regarding these tariffs and related elements.

· To Collect Transport and Trade Statistics

It becomes possible to track information surrounding the movement of commodities to and from a different place by using HS code.

It doesn’t matter the method of shipping you are using since the code will be able to identify such information.

Importantly, such statistics enable the government to lay down structures on how to improve the efficiency of the movement of goods.

·  For Economic Research and Analysis

The bottom line of needing HS code is to help to capture data, which the government uses for purposes of economic research and analysis.

The authorities ensure they use the information for bettering various aspects of manufacturing and international trade.

The data also provides the government with relevant information for projecting and steering the economic growth of the country.

How HS Code China Works in Import Business

It is quite a detailed process, which requires a high level of meticulousness to attain the necessary accuracy.

Even so, there are general rules of interpretations for guiding users to use HS codes in for classifying imported goods.

The steps for this process include the following;

1) Gathering Information

It is regarded as the critical aspect of classifying commodities into HS codes.

Any slight misinterpretation of the primary use of the product may lead to high duty tax rate.

In this instance, it is necessary to understand all the descriptive terms of a product.

This may include material composition, physical attributes, chemical characteristics, and quantities, among others.

Classification of any imported commodities requires all the relevant documents to assist in the process.

Some of the document sources a customs broker will refer to gather information include;

• Commercial invoice and cargo packing list, which provide the description and quantity of the cargo.
• CAS number, which is correlated directly to the applicable HS code for a chemical element.
• Commodity catalog, which is essential when it comes to determining the primary use of the product.
• Material safety data sheet, which provides chemical classification and material component of the goods
• Ingredient list, which offers a list of ingredients the food contains.

2) Establish all Possible HS Code Classification

It is the point to refer to the HS code to identify all possible HS codes relevant to the specific commodity.

An ideal approach of attaining this is by using the alphabetical index.

The other vital way to obtain accurate HS code is by referring to the top-level table of contents of HS code.

3) Refer to the General Interpretive Rule

This rule sets a parameter regarding the application of HS code.

The GIR, as it is commonly known, is often applied hierarchically.

It thus implies if you can never classify the HS code with GIR 1 rule, you can move to GIR 2.

GIR 1 primarily, stipulates that classification is determined based on the terms of headings and any relative section or chapter note.

Alternatively, if GIR 2 still cannot classify an HS code satisfactorily, you’ll then move to GIR 3 rule and so on.

You’ll continue moving to the next GIR rule in the sequence until you attain the correct classification for the product.

GIR 2 stipulates that any reference in a heading to a product must have a reference to the commodity, whether unfinished or incomplete.

All it needs to have is the essential character of finished or complete product at the same entry.

GIR 3 provides for classification principles for commodities, which at first glance, fall under two or more headings.

This rule has three parts applied serially until a particular classification is determined.

GIR 4 concerns new products not necessarily covered by any specific heading of Harmonized System.

In case the product is required, this GIR offers classification with commodities it closely resembles in nature.

Then GIR 5 deals with containers and packaging of the products.

Few products are ideally, traded without being packed in a particular manner.

And the question arising out of this is always how to account for such packing containers and materials.

After accomplishing these three major steps, you’ll determine the number and use it to submit information to customs department.

They do it to verify the rate of payable import duty or tariff on imported commodities.

It is thus necessary to provide your customs clearance agent with details regarding the products.

It enhances the clearance process of the goods through the customs.

How ITC-HS Code and HSN Code Compare

ITC-HS code is an acronym for Indian Trade Classification. It was adopted in India to facilitate import-export operations.

It is a schedule with two parts.

The first part is an eight-digit schedule with nomenclature, while the second part is a schedule with a description of goods chargeable to export duty.

The major difference between these two codes is ITC-HS adds two more digits in the HS code structure to classify products.

The addition of these two digits is done following HS system stipulated regulations as set by WCO.

Notably, there are no changes interfered with the existing structure.

Importance of HS Code China in Export Business

It is a legal responsibility for any company or trader exporting goods to China.

Therefore, it helps in facilitating faster customs clearance of shipments.

It also prevents unnecessary inspections and fines as well as penalties.

Besides, it helps in double-checking revenue in regards to taxes and duties.

It streamlines the revenue collection process, thus guaranteeing accuracy at each time.

Also, it helps in calculating the bottom line of the business, which is essential in saving time and money.

In essence, records may indicate you comply with all the requirements surrounding HS code.

It is more or less like a common business language.

Furthermore, it is easier to facilitate the exportation of commodities from different countries irrespective of the language barrier.

It is essential in cataloging products correctly in trading transactions.

The fact many companies are exporting products all over makes classification a critical approach in the export process.

Limitations of HS Code China

It has a fair share of disadvantages, which include the following;

• Any slight mistake in regards to improper use of HS code might lead to incorrect levying of duties and taxes.

Ultimately, this makes the products highly expensive for the end-users.

• The last digits after the HS code tend to vary from one country to another.

Thus there is a possibility of confusion if mentioned on the commercial invoice.

It could end up defining a different product for your customer’s country.

• It calls for high meticulousness, especially for new products to prevent incorrect classification.

It becomes challenging to change codes once approved since it can be costly.

It may also attract punitive legal and technical issues about tax laws and delay at the borders.

• It suppresses the developing nations since they have to do with standards sets by the developed countries.

It thus makes it difficult for the former to match the standards for their manufacturing sector.

• It is exposed to fraud, especially when an incorrect HS is used for classifying a product.
• It can turn chaotic in case the respective auditors interpret the codes differently. An incorrectly interpreted HS code leads to heavy taxes on the part of the importer. In such instances, the customs officer usually impart duty as they see it fit.

How to Control Export and Imports using HS Code China

HS code plays a fundamental role in controlling export and imports in China.

It works in a way that allows the government through its agencies to set specific limits for imports and exports.

For instance, if the Chinese government is interested in protecting local rice producers from overseas competition, it can do so by using HS Code.

What happens, in this case, is the government enforces a specific HS code used for rice.

Such HS code is designed to restrict imports by setting limiting quotas, which help to prevent overseas traders from exporting rice to China.

And perhaps let’s assume there is an outbreak of certain calamity, which affects the production of pork in the country.

Of course, this may lead to a decrease in production of pork in China.

Therefore, the Chinese government can then prohibit the exportation of pork to freight markets by recognizing the HS code for the product.

China Inspection and Quarantine (CIQ) is the agency mandated with regulating imports and exports.

It thus becomes easy for the government to enforce specific HS codes through this body to control export and imports.

Impacts of using wrong HS Code when Importing from China

Capturing an incorrect HS code for a product is regarded as illegality when importing from China.

It is the reason it advocated for importers to ensure they use professionals who understand the dynamics of this classification tool.

Using wrong HS codes has all negative impacts, which include the following;

· It triggers Administrative and Smuggling Investigation

Once a wrong HS code is detected, the importer is automatically subjected to smuggling investigation by the relevant investigative bodies.

This act is regarded as a violation of customs law in China; hence the importer is subject to smuggling charges.

The process of vindication can be tedious, time-consuming, inconvenient, and costly.

· Delayed Customs Clearance

Detection of a wrong HS code automatically leads to delayed clearance at the customs department.

It is where the process of justification begins, which implies the goods are set aside pending investigation.

Depending on the nature of the case and product, the entire consignment can take several days or weeks before it is cleared.

In some instances, it is never cleared at all, thus causing immeasurable inconvenience.

· Inaccurate Certificate of Origin

The certificate of origin is often pegged on the information derived from the products.

It is prepared using data from HS code, among others.

It thus means wrong HS code automatically results in incorrect drafting of the certificate of origin.

The moment this happens, it is bound to cause clearance issues at the other country of destination.

· Denial of Preferential Duty Treatment

It can also lead to the refutation of the commodities from preferential duty treatment.

In other words, in case the items were subjected to zero duty or tariffs, it becomes difficult to prove otherwise if the HS code is incorrect.

In essence, you end up incurring unnecessary costs in terms of paying duty for goods, which were not to be taxed.

· May Jeopardize Bilateral Trade Agreements

In serious cases, the wrong HS code may break trade relations between China and the importing country.

At times the relationship can be compromised to the extent where bilateral trade agreements are discarded.

There is always a natural feeling that perhaps the country of origin intended to smuggle the goods to the country of destination.

Importing country may initiate an investigation, which could ultimately hinder the relationship between the two nations.

· Punitive Fines and Penalties

Ultimately, the importer may be subjected to severe penalties and fines once the investigation is over.

In essence, this affects importer’s budget and hence causing unforeseen inconveniences.

How to Find HS Code for Products you’re Importing from China

When importing goods from China, you can find the HS code for the same using a wide range of online searching tools.

They are available and summarized in such platforms to allow importers to easily access when need arises.

Government pages such as China customs official website are also ideal places to find the HS code when importing from China.

Once you are on such websites, you need to find a description closest to your commodity.

In any case, there are instances you may fail to get the precise description of the product.

Even so, there are options, which allow you to explore descriptions leading to the specific commodity.

Nevertheless, there is a need to verify the HS code for a particular product is correct.

It prevents unnecessary legal issues, fines, and back and forth during customs clearance.

After finding the HS code, you can view the import duty payable for your product. It is usually visible in the overview of specific codes.

Understanding Import-Export Duties and Taxes in China

In China, the HS code and declared value of the commodities are the elements, which determine the method applied for calculating import-export duties and taxes.

Importing/exporting from China attracts taxes such as customs duty, Value added tax, and consumer law. Any product imported to china is subjected to a VAT of either 13% or 17%.

13% are for goods from agricultural sector and particular types of utilitarian commodities.

17%, on the other hand, is for any other product.

Consumption tax applies to companies and organizations producing and importing products.

In China, goods considered toxic to human health are taxable imported products subjected to the consumption tax.

All shipments, which contain samples and marketing articles, are subjected to tax depending on their respective commodity HS codes.

I hope you learnt everything you need to know about HS codes.

However, in case you have any question, feel free to contact Tj chinafreight team.