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When importing products from Chinait is important to understand import duties, customs fees and clearance documents. As an importer, Chinese manufacturing is a good choice for many products that can be sold locally or online and reap huge profits. Tariffs depend on the products and commodities you import from China to the United States, which makes the entire international trade process for new importers seem complicated. This article will help you understand the tariffs on goods imported from China to the United States and how to check each product tariff.
Let us delve into the import tax from China to the United States. Since February 24,former U. The amount of tax exemption means that the goods that meet the conditions are less than the stated dollar amount of USDand can be exempted from making customs declaration without paying customs duties or taxes.
This means that most goods shipments of less than U. This move not only motivated the US consumers but also inspired a lot of e-commerce sellers to consider shipping with express delivery. However, the exemption rules are conditional and exceptional, and under the United States Customs regulations U. If the Customs considers that the goods are one of several batches under a single order or contract and are shipped separately for the purpose of free entry tax exemption or to avoid compliance with any relevant laws and regulations, this situation cannot be exempted tax.
Goods that are part of a tariff quota cannot be tax-free for example, products that are tariff quotas cannot be exempt from taxation. Goods that are regulated if one or more of the cooperating government agencies require information are not exempt from taxation for example, goods subject to FDA regulation are not exempt from taxation. As long as Customs suspects that the low value of the shipment is to avoid compliance with certain relevant laws, the goods may be denied a tax exemption.
Tariffs are not based entirely on declared value — it also varies from product to product. However, customs officials are busy people. Instead, the HS code specifies the type of product. HS coding coordinating commodity description and coding systems is part of the international classification system, making the process very simple.
However, you can be sure to specify the correct HS code on the commercial invoice. Otherwise, you will end up paying a customs tax rate based on the wrong product. Regarding the correct coding of HS, you can check it online on the US Customs, or let your customs clearance agent provide it to you.
If you use a customs clearance agent to help you clear customs, you should do it according to the requirements of the customs clearance agent. Tariffs and taxes are calculated as a percentage of customs value. The value of the customs is based on the declared value, and the declared value should be indicated on the commercial invoice — the document issued by the supplier. Declaring the correct value on a commercial invoice is critical, otherwise, you may end up paying the wrong amount.
It is always the responsibility of the importer to ensure that the correct declared value is indicated on the commercial invoice. This responsibility cannot be transferred to Chinese suppliers.
You must confirm with your Chinese supplier the value of all declared products before shipping. Tip: As we all know, low declarations can reduce the cost of goods entering the customs and enhance the competitiveness of products. However, customs is not a fool. Every product is declared by the customs according to the market price when it enters the customs system. If your goods are significantly lower than the customs-defined price, then the goods will be directly transferred to the inspection department by the customs, and the customs will charge hundreds to thousands of dollars for inspection fees.
US tariffs are a problem that every Chinese-to-American express parcel cannot avoid. Goods value below USD is duty-free. Of course, there are also many customers who choose to use the US express channel to avoid tariffs. Customers who have worked in the apparel industry know that the tariff classification of clothing is simply too much.
It is possible to have clothing of the same style, different materials but the tariffs will be different. LEDs may not be as diverse as the classification tariffs for clothing products.The United States does plenty of trading with other countries, but one of the biggest nations we deal with is China.
We spend billions of dollars each year importing all sorts of goods, especially food. Not everything is unsafe, but these 20 dangerous foods might be lurking in your kitchen right now! Thousands are cramped in small areas teeming with sewage and garbage, making them highly toxic. Eggs: If you get eggs that were imported from China, you might want to think twice before scrambling them up.
Factories there use calcium carbonate and paraffin in their eggs, which can cause serious food poisoning. Officers seized about 20, pounds of spoiled rat meat, as well!Importing from China - Sourcing Products from Chinese Suppliers
Tea: Even though China is the biggest purveyor of tea throughout the world, close to 29 toxic chemicals have been found in various brands. Luckily, none of them were exported to other countries, but still…. Industrial salt: For years, industrial salt has been sold throughout China as table salt.
However, this type of sodium is not meant for human consumption; it can cause hypothyroid problems and reproductive system disorders. Buy your produce locally to avoid getting sick. Tilapia: Much like the factory-farmed cod, these fish are placed into small overcrowded areas where the water is full of toxic chemicals.
The fish breathe in the chemicals and then end up on your dinner plate. Some factories use sulfur dioxide to make their noodles appear fresh. This chemical has been linked to cancer. So what does a company do to counter the problem?
They pump borax-filled additives into their pork to make it look like beef! Garlic: Chinese garlic farms are known to be coated in chemical products before the garlic is picked and shipped to stores.
If you ever eat Canadian garlic and then Chinese garlic, you can instantly taste the difference. Mushrooms: When food inspectors examine mushrooms coming in from China, they often find tainted batches. It turns out many factories add a cancer-causing synthetic resin to their rice. The problem is so bad that six children have died over recent years andhave gotten very ill.
Apple juice: Amazingly, 50 percent of the apple juice sold in the United States comes out of China. This is scary since the number of pesticides sprayed on the fruit prior to processing is at an all-time high. Stick to water, instead! Cabbage: During the super high temperatures of the summer months, Chinese farmers will spray a highly toxic formalin solution onto cabbage to keep them looking fresh. Best not to dabble. Infood inspectors found artificially colored fake peas in thousands of cans.However, it is not an easy task, especially for the newbies.
The importing process can be extremely complex, confusing, and costly. Expected gains can often be erased by long transit times, rising or fluctuating delivery costs, regulatory fees, and unexpected delays. NOTE 1: The information provided below are for general information purposes only. The best practice is always checking with your local customs authority and buying from small order.
Wish you a good start.
Importing from China to USA:Customs & Duties
When you buy goods from foreign sources, you become the importer. If so, it will save you a lot of time and money. But before purchasing commercial goods into your country, as a business or an individual, you will need to identify if you have the import rights. Learn more if you are an U.
Many import regulations only apply to goods imported for commercial — business or resale — purposes. And only the customs authority can make judgment calls about what qualifies as personal use. Several suits that are identical or a number of very similar handbags will have a hard time passing the credibility test as items for personal use. Trade company make money by selling products. Choosing the wrong products means you are losing time and money.
Obtain descriptive literature, product composition information and, whenever possible, product samples. This information will be crucial when it comes time to determine the tariff classification. The tariff clarification number HS Code will be used to determine the rate of duty that will be applied to your goods. Certain goods are not allowed to be imported. Different countries have different prohibited products. Also make sure whether the goods you intend to import are subject to any permits, restrictions or regulations by your government.
Importing goods that are unsafe, that fail to meet health code requirements, or that violate restrictions could end up costing you quite a bit of money in fines and penalties. At the very least, such goods would be detained, and possibly destroyed.
Determine the digit tariff classification number for each item you are importing. These numbers along with the Certificate of Origin are used to determine the rate of duty you must pay when importing. Then do the land cost calculation. Pay attention to the Incotermsand calculate the total landed cost before you place your order.
For example, FOB means adding the following three together. Place your order with the vendor, shipper or exporter and identify shipping terms that will be used.Many of you will choose to import goods from abroad outside the European Union. For many new traders, Importing sounds like a nightmare to go through. Here are the 4 most popular shipping methods you can use to import goods from China:. This means normal, regular China Post which can take up to 6 weeks to arrive.
No online tracking is provided. It can be used for parcels under 2kg. Usually, you will only use regular post for samples and again ONLY if time is not that important and you can afford to wait a few weeks for a package to arrive. If at all possible, I try to avoid using China Mail for any shipments as the delivery time is simply too long. If your supplier is located in Hong Kong, you can use HK Airmail which is way more reliable, comes with a tracking number and usually arrives within days.
Shipping with a courier company will be the most suitable method for most people starting out IF it involves small, lightweight items. These days most courier shipments take just business days to arrive in any Western country from anywhere around the globe. This is somewhere between courier shipping and sea freight. Shipping times vary from company to company, but in general range between 5 to 10 days which is not bad at all!
With Air Freight costs will be significantly lower than with courier companies, but extra work is involved when the goods arrive in your destination country. Of course, you can always outsource these tasks to a freight forwarding company at an additional cost. This is the most popular shipping method used by big companies to import goods from China.
Your supplier will usually give you the FOB price, which means that the goods are loaded onto the ship.
Once your shipment arrives at the port there are all kinds of extra charges, such as:. These fees can run into hundreds of pounds! Again, the easiest way to keep these costs under control is by using a freight forwarding company. You can ask them to quote for door-to-door delivery which includes all the fees associated with Sea Freight shipping. Even with all the additional fees Sea Freight is still the cheapest shipping method for imports from China.
Usually, a half pallet or one full pallet will be enough if your margins are right. Sometimes Air Freight offers the same savings as Sea Freight with the added bonus of much speedier delivery. In general, Sea Freight is better for bulky items or in cases where the shipping time is not that important.
Here is some good news — I have recently started recommending a freight forwarding company called Woodland Global. Woodland Global is a great company to deal with and so far I have only heard positive feedback about them:. In a word — Woodland Global is a perfect solution for small-time importers! Woodland Global can even pick up goods for you in China and deliver them to the nearest port.China is one of the most important partners on the African market for a long time.
With such a wide African continent, the demand for certain goods is also increased. The good news is that China can supply most of the basic African necessities. There are plenty of profitable products to import from China and, as time goes by new opportunities appear. The commercial relationship between Africa and China is bringing a lot of benefits to importers and exporters worldwide. The economic relationships between China and Africa began centuries ago. And the main reason for which China is so interested in the African market is its need for raw resources.
In the same time, African countries are looking for financial support to develop different industries and China can offer that support. On this basis, developed import-export commerce emerged between the two regions. China is a country with a high level of productivity.
It can be a great source of all kinds of goods according to the necessities present on a certain market. And people in business who own an import-export company can find a lot of options to explore in China. However, to be successful, you need to identify the best products that will bring you profit and help you develop your business in the long run.
Most likely, you will change the type of goods you import several times over the years according to what the market needs most. Here are the most popular and the best products to import from China when you want to break into the African market!
Africa is a large continent populated by millions of people. There are African countries with a population that reaches close to million people, such as Nigeria. Africans like to consume a lot of rice. They even incorporated it into their culture and made it part of their traditional cuisine.
And the most consumed type of rice in Africa is the white rice which can be easily imported from China. Along the years, African governments in different countries tried to create a farming industry that will supply the amount of rice at least at a national level. But the quality of the rice produced in Africa turned out to be lower than the quality of the imported rice.
This is one of the reasons why Africa keeps importing rice from countries like China. Sugar is another type of goods that are imported from China along with different vegetables and even meat.
Since the urbanization process started and more Africans started life in the city, the demand for these types of goods increased. Also, food products are also some of the cheap products to import from China, which makes them even more popular. Clothing is a basic type of good to import in Africa, and it will always be in demand. China offers quality materials and apparel that can be imported into almost any African country.
While Africa imports a lot of second-hand clothes from countries like the USA, it also imports a lot of brand new clothes from China. The reason African people prefer Chinese apparel is not only based on its high quality but also on its affordable price. And if the clothes are adapted to the African traditions, there is no risk of failure for the importer or the exporter.This mega guide will give you all of the information you need to get started importing from China: Everything from finding the perfect product, negotiating with suppliers, to figuring out the best way to ship your items.
If you plan to run your own ecommerce business then you need to be importing from China to succeed.
Here are some other reasons to import from China:. It took me nearly 10 years to get to that point, but ecommerce and Amazon were also considerably smaller when I started. Importing from China is very much a cash-dependent game. InI started a new brand that nearly hit a million dollars in revenue in under a year. The most important thing you need to import from China is money to buy inventory. You will also need an Amazon Seller Central account if you plan to sell on Amazon.
Needless to say, you do not need any Chinese language knowledge as well. Almost all Chinese suppliers who export have English language websites and sales catalogs and at least a couple of staff members with reasonable English. China is the factory of the world but there are certain products which are good for small importers and others which are bad. Identifying good and bad products basically comes down to understanding two critical differences between China and Western countries :.
Chinese factories make a lot of crappy products but also make a lot of excellent products. One of the ways to avoid crappy quality products is to import simple products. Example products would be mouse traps, garlic presses, and furniture. More complex products are more likely to have quality issues. Remember the exploding hoverboards? On the contrary, the more complex a product is, the higher the likelihood it will be produced of bad quality.
The most obvious examples of these are electronics. You should also avoid importing any inherently dangerous products. The importer re: you is responsible for any personal or property damage your products may cause.
Products to avoid include any electrical devices, baby products, digestible products, etc. Finally, China is home to a lot of knock-offs. Your primary concern will be ensuring quality products.
Are packages from coronavirus-hit China safe to handle?
With Aliexpress you are normally buying from a reseller and you can buy one or two items at a time but at a much higher price. My preferred method by far for finding a supplier is by visiting trade shows.
The best suppliers often do not advertise on Alibaba but do attend trade shows. The Canton Fair is the largest trade show in China and is good but it is even better to go to industry-specific trade shows. Sourcing companies can be useful for finding difficult to locate products but normally are reserved for higher order volumes. In China, there are two basic types of suppliers: factories and trading companies.
Factories manufacture products.Suggestion : Watch the 10 minutes video tutorial before reading this article. Calculating profit margins directly on a unit price is not a wise decision. Buying products from Chinese manufacturers is much like flying with a budget airline. No extras included. They provide machinery, labor and hopefully manufacturing expertise. You provide the rest, including things that a buyer would normally take for granted.
Need a customized component or material substance analysis? Businesses importing from China must manage, or pay someone to manage, critical parts of the supply chain, including product development, quality inspections, tooling and laboratory testing. In this article we explain what costs you need to keep track of, when buying from Chinese suppliers. Injection molds are used when manufacturing a wide range of consumer and industrial products. Chinese suppliers do keep molds in storage, often financed by previous buyers.
When buying factory designed products, the buyer is usually not expected to pay for the injection mold. However, when manufacturing customized products, the buyer is expected to pay for the necessary tooling.
In many countries, the tooling cost is also part of the customs value, thus resulting in increased import duties and other taxes e. Click here to read more about injection molds and tooling costs. Buying wholesale products in China is rarely an option, especially for importers base in the United States, Canada, Europe and Australia.
Many suppliers hand out factory samples for free, but custom designed and branded samples almost always comes at a cost. Click here to read more about product samples. Selecting a random supplier online, without any prior knowledge about supplier sourcing in Chinais likely to result in disaster.
That being said, in order to know what to look for in a supplier, you need to confirm which product safety and labeling regulations apply to your product. Different suppliers manufacture products of different quality standards, using different materials and components. At a minimum, you need to draft a product specification.