You'll need to get a lot of things in order before you can begin the import process from China. Failing to do so probably results in long delays, as well as fines. When Shipping from China to US, it is best to engage with a licensed freight forwarder.
More than 20 percent of all US imports come from China, making it America's most important trading ally. Despite tense relations between these two countries, this tendency has remained stable. Trade between the two countries is expected to remain high for many years to come. Since half a trillion dollars worth of goods can't be easily found, importers will still need to have a firm grip on the criteria of Shipping from China to US
Importing from China doesn't have to be difficult if you know what you're doing and how the rules work. We've included some tips and points to get you started.
An Overview of Shipping from China to US
Shipping from China to US will become more volatile in 2020. Trade with China was severely affected by global health concerns, making it difficult for many to import goods. Imports from China have slowed, but importers still have chances to take advantage of them.
China is the source of some of the most sought-after products. Ventilators, personal protective equipment, surgical gloves, and intensive care beds are just some of the items that many foreign merchants are looking to import. Importing isopropyl alcohol during the global pandemic is one of the things we assist with.
Some tariffs and regulations have been eased to maintain trade flowing from China to the United States. During times of economic instability, this helps keep the wheels of commerce turning. Items that are not subject to Chinese tariffs include:
- Chest coolers
- Upright freezers
- Plastic drinking straws
- N95 respirators and face masks
- Anesthesia masks
Many importers are taking advantage of the low tariffs and soaring demand for imported goods.
Section 301 Extreme Tariffs on Chinese Products
The Trump government issued a series of high tariffs on Chinese imports before the onset of the pandemic. Trade deficit reduction was one of the primary goals of the Section 301 tariffs, which were enacted to pressure China to respect American enterprises' intellectual property rights. However, the intensifying trade battle between China and the United States was a less-than-desirable side effect of that decision. Put another way; these tariffs have had a major impact on China's import tax in 2020.
As time went on, the United States published four lists of commodities that would be subject to additional taxes until further notice, covering nearly all importable items. In response to China's increased tariffs on US goods, the tariff rates on those items likewise climbed over time. List 4 was originally intended to be divided into two sections, but the second portion was scrapped due to trade negotiations between the two countries.
Due to ongoing trade discussions, the United States has released several lists detailing which products will not be subject to tariffs in the future.
How to Bring Chinese Wholesale Goods to the United States?
You might ask yourself a few questions about wholesale products if you're contemplating Shipping from China to US. Are my Chinese imports easily marketable? Is the profit margin on my Chinese imports high enough? Is the quality of my Chinese imports high enough to compete in the market? Is it easy to work and communicate with different suppliers?
Getting the answers to these questions can assist you in your search for merchandise. To locate products to import from China, MAPS is a simple formula to follow: MARKETABLE, AFFORDABLE, PROFITABLE, AND SELLABLE are MAPS abbreviations. Consider using MAPS to locate vendors.
Costs for Shipping from China to US
However, even though imported items may be cheaper than domestic ones, additional costs are involved in importing goods from China. The following are the costs associated with shipping from China to US:
Cost of transportation. You or the seller (depending on the Incoterms utilized) are responsible for moving items from China to the United States. When Shipping from China to US, the cost of transportation can quickly pile up.
Fees for storage, inspection, and entry into the country. Imported goods from China are subject to US customs and border patrol scrutiny. Some of these inspections may cost you. These fees can add up to unforeseen charges depending on the things imported. At the time of inspection, you may be required to pay port fees.
Fees for Customs Brokers. The import process might be made easier if you work with a licensed customs broker. All costs, licenses, and import clearance can be taken care of by these experts. Working with a registered customs broker comes at a cost.
Fees for using an agent. Customs inspectors have the right to check your goods if you are Shipping from China to US. Fees may be incurred in some cases. At the port of arrival, you can pay these fees to expedite the transfer of your goods to your warehouse or other location.
Import Taxes & Charges. In view of the Section 301 tariffs imposed earlier; this is an important component of the Shipping from China to US process. Import duties from China to the United States can add up quickly. The value of the imported goods is used to determine the duty rate for most products. The expense of duty on some goods might run into the millions.
Are Permits Necessary for Imports and Shipping from China?
Shipping from China to US does not require general import permission. On the other hand, certain Chinese items may necessitate a permit from a government agency. Different federal agencies regulate imported products, and the rules and regulations for each might be rather diverse. Any products you import as an importer must comply with all federal regulations, which may include permits.
Importing goods from China and paying for them
Shipping from China to US isn't like working with a local vendor. If you can't use a credit card to pay, you'll have to choose other payment options. Most Chinese vendors prefer Bank-based payment options.
The most common methods of payment include:
Wire transfer across international borders. For small to medium-sized transactions, this is a typical means of payment. International wire transfers are frequently conducted before the shipment of goods in numerous situations.
Once the products have arrived, the importer can use this payment method to pay for them. The distributor or manufacturer provides credit.
Letter of credit. In many ways, this payment option functions like a typical bank loan. It is required that the buyer's bank issue a letter showing how much credit the buyer has. A letter of credit is generally used as a conditional guarantee by banks. The buyer's bank will pay the supplier if the letter's commitments are met. Following that, the buyer will make payments to the bank in order to pay off the credit line.
Online money transfer. As a letter of credit, this payment method is most typically utilized for purchases of less than $5,000. Online importers may prefer this mode of payment.
A cash advance is a loan of money. The most dangerous way of payment includes making a cash payment for products before they are delivered to the customer's doorstep.
Documentary collection. In a way, it's like paying with cash on delivery (COD). The seller's bank will collaborate with the buyer's bank to collect payment through the documented collection. As long as a method of document collection is followed, imported goods can be obtained before or following payment.
Shipping from China to US: Some Basic Considerations
It's essential to remember a few more things while transporting goods from China. Inquire into whether or not these goods can be imported into the United States legally. Some Chinese imports are subject to additional regulations. Importing your goods is only possible if an authorized customs broker approves them.
Is delivery included in the price? You or the seller may be responsible for shipping expenses, and risks assumed, depending on the Incoterms used. For a smooth transaction, discuss the Incoterms with the seller beforehand. Shipping choices could include ocean freight, air freight, foreign postal service, or courier service, depending on the product imported and the amount of your order.
Do you find the product information to be clear and informative? Providing incorrect information about the products and their worth to CBP is unlawful. If you're importing something, make sure you've got all the correct information.
Follow the correct customs procedures, please, in order to ensure that all applicable regulations and procedures are followed.
Does my company require product liability coverage? If there is a product defect, you may be eligible for product liability insurance. When Shipping from China to US, you may wish to inquire about product liability insurance.
Is the customs bond I'm presenting valid? Customs bonds come in two varieties. Make sure you've chosen the correct bond for your company. In order to streamline the import process, it is best to use a continuous bond.