Importing from China: Step-by-Step Guide for Beginners

Step One: Choosing Goods to Import from China

Before choosing goods to import from China, make sure you have the necessary qualifications for importing. For US companies importing under their corporate name, they need an Employer Identification Number (EIN). For individual importers, a Personal Taxpayer Identification Number (ITIN) or Social Security Number (SSN) is necessary.

Importing Country Requirements:

• Obtain an importer number that will appear in import documents
• Most goods don't require import permits, but some goods need permits from relevant agencies

China Requirements:

You should also consider exporting country policies. Check Chinese export policies to ensure your goods can be exported smoothly.

Market Prospects for Goods Imported from China:

• What is the potential profit margin? Can it reach 30%?
• What are transportation and storage costs?
• Is there a market for this product in your country, and what is the potential demand?

Step Two: Finding Suitable Suppliers for Importing from China

Online Sources:

The appropriate way is to use B2B e-commerce platforms for sourcing, such as Alibaba, the most famous Chinese platform with more than 5,900 product categories and more than 200,000 suppliers worldwide.

Field Visits:

Sometimes, many importers personally visit China to secure suitable suppliers. They attend trade fairs or tour factories to find appropriate products and suppliers.

Canton Fair (China Import and Export Fair):

Guangzhou hosts two sessions of the Canton Fair annually. The fair is organized in three phases:

• Phase One: Focuses on industrial themes
• Phase Two: Highlights daily consumer goods
• Phase Three: Features textiles, clothing, and food products

Step Three: Choosing Transportation Methods for Importing from China

Common Transportation Patterns:

• Sea Shipping: Takes longer but is more cost-effective compared to air and land transport, making it suitable for transporting large quantities of goods
• Air Shipping: Suitable for transporting perishable goods and high-value products
• Railway Shipping: More economical than air shipping and less affected by weather
• Truck Transport: Suitable for medium and short-distance transport

Transportation Services:

• Door-to-door service
• Port-to-port service
• Less than Container Load (LCL) service for smaller shipments

Remaining Steps: Customs Clearance and Delivery

Documents required for customs clearance include:

• Packing lists
• Certificate of origin
• Bill of lading
• Customs bond
• Commercial invoice

Customs duties must be paid during the customs clearance process, taking into account trade agreements that may reduce duties.