Beginner Tips on Importing From China to the USA
Importing from China to the USA is commonplace for inventors and innovators looking to outsource manufacturing. While it is a standard practice for many, that doesn’t mean that importing from China is easy or intuitive, especially for beginners.
The China manufacturing process is just the beginning. It’s normal for issues such as extended transit times, rising or fluctuating delivery costs, regulatory fees, and unexpected delays to arise seemingly out of nowhere. If you are not used to importing products from China to the USA, you need someone reliable to show you the ropes.
Our sourcing experts at China Sourcing International (CSI) are here to teach you how to import from China to the USA in 10 Steps. We’ll cover all the basics for beginners so you have an idea of what you need to do to to ensure your success is smooth and manageable.
1. Know your rights as an importer.
As an importer, your rights will vary based on where you and your business are registered. If you’re from the United States, you can use your company’s Internal Revenue Service Number (IRS EIN) to determine your importing rights. Make sure to have this on hand not only at the beginning of the importing process, but all the way throughout.
2. Confirm the products you want to import are allowed in the US.
Just because you want to manufacture something in China and import it to the US doesn’t mean you can. Review the United States’ restrictions on imports and find out if you are required to get any permits or may be subject to restrictions or regulations by the US government.
It is your responsibility as the importer to ensure that the goods you are importing comply with US rules and regulations. Products to be especially cautious of include flammable fabrics, cosmetics, medical devices, pharmaceuticals, food and beverages, motor vehicles and boats, and branded products.
3. Review health code requirements for importing from China.
This is one of the most important tips for beginners importing from China. Unintentionally importing goods that violate health code requirements could result in extreme fines, penalties, products being detained, and destruction of property.
4. Classify your goods and calculate landed costs.
The 10-digit classification number for each item you import from China, along with the Certificate of Origin, will determine the rate of duty you’ll pay when importing goods from China. From there, you can calculate the landed cost.
Pro tip: calculate the total landed cost before you place your order. Both overestimating and underestimating landed costs could cause you to lose customers and revenue. The best way to get the FOB (Free on Board) pricing is to add:
- The product price from the supplier.
- The shipping charges from the freight agent.
- The charges of customs clearance, duty and tax, and land transport from landing to your warehouse in the United States.
Bear in mind that freight shipping depends on Incoterms (international commerce terms). Some suppliers and sourcing companies in China can arrange freight transportation and logistics, which may simplify the process. Just make sure you partner with a reputable company so you have control over the cost, speed, and security of the shipment.
When calculating costs, there will be times when you won’t have the exact cost until after a shipment arrives. Do your best to estimate as accurately as possible by getting estimates from companies you work with. At China Sourcing International our area of specialty is Product Management and Consulting. We can help you understand the costs of previous shipments to get a good idea of an accurate estimate.
5. Find your supplier in China and place the order.
Ideally, this should be done before you entertain the idea of importing from China to the USA, but this is the part of the process where you will put the order placement into action. It is critical that you partner with the right supplier in China; China Sourcing International can help you with that.
Once you choose a supplier in China, the next step is to ask for a P/I (Proforma Invoice or Quote Sheet). Make sure that the P/I includes the weight and packaged dimensions and term of purchase.
6. Arrange the cargo transport to import from China.
Our best piece of advice here is to expect the unexpected. Plan for delays in production and delays in transportation schedules. Even once production is complete, it will still take 1-2 days for the cargo transport to go from the factory to the port. Then you’ll need to account for another 1-2 days for your products to go through the Customs Declaration. Be patient but also keep an eye on where your imports are each step of the way.
7. Partner with the right freight forwarder when importing from China to the US.
Once again, this is where logistics come into play. Partnering with the right freight forwarder when importing from China to the USA will make all the difference in how smoothly operations run and could help you manage costs. The wrong logistics partner could interrupt cash flow and lead to unnecessarily high costs. In the worst cases, it could destroy a business. To work with China Sourcing International to find the best logistics providers in China, call us at +1 (888) 915-1060.
8. Track your cargo shipment and prepare for its arrival.
When importing from China to the USA, estimate that it will take about 14 days to reach the West Coast of the US and about 30 days to reach the East Coast of the US. To be prepared to receive your shipment from China, we suggest having the following documents already filed with the port director:
- Bill of lading listing the items you plan to import
- Official invoice listing the country of origin (China), purchase price, and tariff classification of the products
- Packing list with all imported goods
- Arrival notice. This should be delivered by the freight agent
Here are some tips for expediting clearance when importing goods from China to the United States:
- Have an organized system for invoicing your goods.
- Show exact quantities in each case.
- Mark and clearly identify each case or package.
- Clearly identify marks on invoice to cross reference.
9. Accept your shipment — hooray!
Arrange with a customs broker to clear products from China through customs and then pick up your shipment. Alternatively, you could arrange to have your shipment arrive directly to your address.
10. Review and assess your goods imported from China.
The final step is to review your shipment. Before you assess each product, send a confirmation email to the supplier to let them know you have received everything and that you will be reviewing the shipment shortly. Then check your shipment to verify that what you have imported from China is up to par.
Learn more about what it takes when importing from China to the USA and how to simplify the process. China Sourcing International would love to work with you and offers a complete range of sourcing services designed to be efficient and cost-effective.
Please contact us unline or give us a call at +1 (888) 915-1060.
You can also email us at [email protected]