5 Useful Tips when Importing from China
Importing from China is a great way to cut cost and increase profitability for many businesses. For this reason, trade with China is at its absolute historical peak, and it shows no signs of slowing down. As international trade could be a little bit confusing, it is very important to make sure everything is in order. Read on to learn more about five useful tips to remember when importing from China.
Make sure you understand importing laws and government regulations.
International trade means that you need to deal with rules and regulations of different governments. It’s very important for you to comply with such rules to avoid issues and costly mistakes.
Find out if there are any restrictions or quarantines.
Certain imports, items, and products might be subject to quarantine or restrictions. This is particularly true when it comes to raw organic materials (certain types of wood), live animals (important insects or fishes, for instance) as well as some food products.
Specify everything in your sales contract
It is really important to have an Iron-clad contract, where everything is as clear as day. When it comes to importing from China, strong contracts are essential.
Make sure you understand the Incoterms being used.
Incoterms dictate international trade and provide some standard guidelines for a better understanding of the process. It’s important to understand the importance of carrying out shipments under the EXW (Ex Works) Incoterm, in order to benefit from its perks. With this incoterm, the buyer has the maximum obligation, and the seller benefits from the minimum obligations, meaning to have the goods ready to go simply.
Understand variable shipping costs
Shipping rates might take you by surprise. In order to avoid that, it’s imperative to understand the possible variables and changes you might face.