Import From China
Tip
1: Verify your Supplier
The numbers of manufacturers and suppliers in China is
endless and the efficiency, quality and legitimacy between them vary
significantly. Therefore, it is important to verify your supplier before you
make a payment. Do not get impressed by a professional website and rankings on
Alibaba. There is only one way to properly verify a business in China and
that's through a local government office, which will check the manufacturer’s business
registration, the annual turnover and its trading history. However, this could
be difficult without being fluent in Chinese and without being on-site. Furthermore,
in order to not get ripped off, it is essential to transfer all payments to an
official bank account of the registered factory or a trusted intermediary and
never to individuals or unions in China.
Tip
2: Get someone on the ground in China
There are countless Chinese manufacturers so they often try
to cheat you, as their reputation isn’t normally damaged internationally as
they operate in a complex environment. Furthermore, even professional
manufacturers in China make mistakes mostly because of communication issues.
The manufacturing industry in China can be described as a Fire
fighting business where problem-solving issues come up on a daily basis. It can
be considered a gamble and often ends in disaster if you try to manage your
production from outside of China. With employees or reliable contacts on the
ground, you can control this risk.
Tip
3: Always do Quality Control
Never import from China without any kind of quality control,
as the production standards often don’t meet western compliance. Some of the best
quality products are produced in China, but on the other hand, it has some of
the worst as well. Despite China’s overall rise and economical growth, there
are still factories, which produce questionable quality. It is not uncommon
that a Chinese manufacture copies a product and reproduces it without the exact
knowledge of its use. The product might look the same, but it might not work as
effectively as the original product.
Once the goods are on the ship or have arrived in your
country, there is no turning back. Importing goods without quality controls is not
conceivable as the risks are too high. Either have your people on the ground in
China that can carry out onsite quality controls or source your products with a
respectable company like MyShipper, which provides three separate quality
control inspections before the goods leave the factory.
Tip
4: Don’t get screwed on payment terms
It is essential to understand the terms and conditions when
making payments to the manufacturer. Normally, your payment includes the whole
production costs including the transportation and Chinese boarder tariffs. It
is not uncommon for the manufacturer to abuse the ignorance of the customers by
adding on extra hidden costs. This then leads double charging for the
transportation and customs, which is nearly impossible to be compensated for.
In order to avoid this risk you need to be fluent in Chinese
and know the legal knowledge of the Chinese terms and conditions forms as well
as knowing the exact location of the factory so you can estimate the
transportation costs. To avoid this minefield you must hire a consulting agency
to check the terms for you and to secure your payment. One of the founding owners
of MyShipper is an Australian born and trained lawyer who is fluent in Chinese
that is an expert in the Chinese terms and conditions documents which is one
less worry for importers.
Tip
5: Get Insurance
The statistics show that most importers do not insure their
goods, which is a very risky practice. Businesses who do not consider insuring
their goods risk damaging their business significantly if a container load is
written off. Although rare, container ships can sink, or containers can go over
board, or get lost or even catch fire. However, the most common issue is that
the goods get damaged during the transit. Chinese dockworkers are sometimes
careless when handling containers so your process from door to door must be
managed. Additionally, heavy goods can be loaded on top of light goods and can cause
damage during shipment. Finally, at the boarder, damage can occur during custom
inspections. The MyShipper service includes a full insurance on your sourced
goods so always order products that include this without massive mark ups.
Tip
6: Use a company that has a Mixed Container Service
A transportation company can fill up containers with
products from different customers in order to increase efficiency and save
transportation costs. Therefore, it is recommended to hire a transport company
when importing less than one container. Furthermore, the risk of lost packages
during the loading or unloading process is minimized because the international
transportation companies have a reputation and have extensive procedures to
prevent loss. MyShipper has established transport links and partners so they
pass on the cost savings directly to the customer.
Tip
7: Get the right price
In general, there are two ways of getting a fair price when
importing container loads from China. If you import less than one container,
you have limited bargaining power, so you have to ensure that you are not
paying over the average market price in China. To do so, you have to get
different quotes from different manufacturers, which can differ greatly from
each other. It is common for different manufacturers to have the exact same
pictures in their brochures that are offering different prices. Try to get as
much information from the manufacturer as possible to ensure quality and a fair
price. Never go for the cheapest offer without carrying out due diligence as a
seemingly good deal can turn into expensive rubbish.
If you import more than one container you have more
bargaining power so be sure to negotiate or deal with supplier that is working
on your side. However, to get the best price you need local knowledge, product
sourcing experience, knowledge of labour costs, production capacity analysis
and experience with the Chinese taxation system - which all depends on the
location. Only when you know the real production costs, can you negotiate the
best price.
MyShipper has an office in China with an Australian lawyer
as a Director that is fluent in Chinese who works directly with our Chinese
employees. Therefore, MyShipper can negotiate the best price whilst
guaranteeing the very highest quality and Australian standard.
Tip
8: Get a contract
As in every business, without a contract you cannot blame the
manufacturer for not fulfilling its obligations. Consequently, the legal system
in China is still underdeveloped and has underlying holes.
There are some critical rules you have to follow in order to
draft a proper contractual document. It is imperative that all the
specifications and materials used in production are included in the contracts,
even if it is seems clear cut. It is very important that you get the factory
stamp on the contract because even if the contract has the signature of the manufacturer,
without an official factory stamp, the contract becomes worthless in China.
As MyShipper has an Office in China and Chinese speaking
employees, manufacturers deliver far higher standards. As a result, MyShipper
knows the exact specifications to put your mind at ease when signing any legal contracts.
Tip
9: Samples
As soon as you agreed the price with a manufacturer, a sample
is sent out in order to demonstrate the quality of the product. In general,
these samples offer high quality and fulfil the customer’s specifications.
There is always the danger that the actual products that arrive at your door
don’t meet the specifications of the sample so it is important to make sure the
legal contracts and insurance cover this issue. Cheaper materials can be used
and quality checks are ignored leading to defect products. Some manufacturers
even buy their samples from premium factories in order to send them to their
own costumers.
MyShipper always demands two samples, one for our client and
one for comparison in our office. As soon as the order is complete, MyShipper
compares it to the provided sample whilst in the factory before the goods are
signed off. Subsequently, MyShipper can guarantee the client’s demands are met
as repeat business and word of both are fundamental to maintaining the
exceptional brand quality.
Tip
10
Due to significantly lower prices, product sourcing from
China is lucrative and gives your company a competitive advantage. However, it
can lead to complications for uninformed businesses. MyShipper, an Australian
owned business, provides elite service and sources your goods directly from the
manufacture to cut out all the middle men and therefore guarantee lower prices
in a safe and hassle free way with experts guiding you every step of the way.
For More Information visit http://www.myshipper.com.au
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