It is no secret that China is a country that is the master of trade in the world. Quickly, China took control of the manufacturing industry where its products are used all over the world. If you go to a supermarket, most of the products on offer are actually manufactured or at least assembled in China. Chinese imported products are widely used because for entrepreneurs, selling Chinese goods is much more profitable than selling products from other countries.
This is due to the following factors:
Labor wages in China are cheaper
China has a lot of people who are experts in their fields
Easy access to raw materials in China
Chinese workers are used to designing products and doing mass production (Mass Production)
With advanced technology, their production line and installation/assembly are more neat and organized than other countries
The above factors result in reduced production costs, but also ensure good quality with advanced technology and skilled workforce. In addition, you also don’t have to worry if you plan to import in bulk or wholesale because of the sophistication of mass production technology in China. Very profitable isn’t it? Then why do people still not dare to try to import China? The reason is because they think that in order to import China, the importer must learn Mandarin and go to China on their own. They also think Chinese imports should bother negotiating with suppliers and meet the high MOQ demands of factories. In reality, doing Chinese imports is not that complex. Check out the following explanation for the China Import Guidelines in 2022.
Step 1: Create a Product Plan
Choosing a good product is a crucial first step because this step is the basis for various decisions that you must choose before importing. At this stage, you have to think about the budget, the market to sell the product, and do benchmarking. To plan a product that is sure to sell in the local market, the first thing that must be done is to do local market research. Selling unique Chinese imported products is good, but there is also a risk of not selling when sold because there is no market. The existence of competition is not always bad in the case of imports like this. Do not let you already import in large quantities, then find it difficult to sell them. Strive for your brand to have a differentiating factor that is more attractive than competitors and don’t chase trend items too much.
Step 2: Make Sure There Are No Import Bans
To protect the interests of the state and reduce the number of imports in Indonesia, the government has issued several import bans. When you are sure about the products you want to import, make sure there are no restrictions for these products. Do not let there be a rejection of the entry of products from Indonesian Customs after you spend money to import the product. Import prohibition rules in Indonesia are commonly abbreviated as LARTAS (bans and/or restrictions). For more information on Import HS (Harmonized System) codes and what goods fall into the LARTAS Category, visit the following customs website.
Step 3: Deciding the Best Way to Import from China
When it comes to Chinese imports, there are two ways to do it. The first way is to do the import independently. Second, you can use the services of a procurement company as a third party. Please note, when you import independently, you automatically become an importer. However, is it really that easy to import China independently? Check out the discussion below.
China Import Independently
Often the importers who import this way are completely dependent on Chinese e-commerce like Alibaba. This attitude is not entirely wrong, because e-commerce platforms usually provide suppliers quickly and efficiently in one place. Negotiations can be done quickly online too. Then if the negotiation is successful, the Supplier can also provide an invoice or note on the same day.
However, Alibaba is not perfect. In this e-commerce platform, there are thousands of choices for the same product. In fact, some similar products are also sold with similar prices and MOQs. In a situation like this, how can you determine which supplier is the best? Other independent importers usually determine the best supplier by trial and error. If you are a novice importer, you may be confused about the cultural and linguistic differences between you and your supplier. Even though it looks trivial, wrong communication risks making you receive low-quality goods from confused suppliers.
Import China with Professional Procurement Company
For those of you who don’t like to take risks by taking the independent import route, then using a third party is the most suitable path for you. Professional Procurement Companies usually have an experienced team that follows every step of Chinese imports that you do so as to minimize the risk of the importer.
Step 4: Find a Supplier/Vendor in China
Finding suppliers is no longer difficult in this modern era. There are many Chinese e-commerce websites like Alibaba, Taobao, 1688, AliExpress, or made-in-china.com that can help you find a reliable supplier. The e-commerce website is equipped with supplier contacts to help you negotiate prices or ask questions about product quality and delivery terms. There are also product prices to make it easier for you to do analysis and comparisons between suppliers.
You can make a list of Potential Suppliers, then narrow down the choices to just one or two. Look for suppliers who have quality products at reasonable prices, don’t chase the cheapest prices too much. A good supplier will understand and strive for the best production. On the other hand, it is only natural for you to leave suppliers who are difficult to work with. Don’t forget to do background checks on suppliers by ensuring their validity through the official website, reviews, and others. You certainly don’t want to be a victim of fake Chinese import suppliers who receive payments from customers and then disappear. Asking for advice from a third party company that can help with the negotiation process with suppliers such as Agung Logistics is also a wise decision.
Step 5: Conduct Product Quality Test from Supplier
This stage is a stage that is mandatory or not is determined by the product you want to import. Product quality tests are usually in the form of sample purchases. If you import high-quality products or special products (such as custom products), then a sample purchase is necessary to ensure that the imported product truly meets your expectations. Purchasing samples is also highly recommended if you plan to import China in bulk or wholesale. This is done so that you don’t experience a loss if you have already paid a lot for mass production but the product turns out to be of low quality. The price of sample products is usually slightly more expensive than the price of the product when purchased wholesale. There is also a possibility that you have to buy samples more than once due to a mismatch in the sample items. However, the costs incurred for the sample will however be much smaller than the losses that must be borne if you have already imported.
Step 6: Calculating Expenses and Selecting a Payment Method
Buddy has made a plan for the product you want to import. You have also found the right supplier and ensured the quality of the product is as expected. The next step is to calculate the Landed Cost. In short, Landed Cost is a way to calculate a company’s total profit and loss by calculating all costs associated with the product. This includes the price of the goods, shipping costs, insurance fees, customs duties, and other costs incurred during the journey.
The payment method is usually the result of negotiation or agreement with the Supplier. The payment media that are usually used are Paypal or Western union, Money gram, etc. Generally, if the amount is small, the Supplier can ask for full payment up front. However, if you import China in large quantities, usually the supplier will ask for a payment of 30% to 50% up front. The remaining payment can be given after you receive the B/L (Bill of Lading).
What is a Bill of Lading? The Bill of Lading becomes a receipt that the goods have been loaded on the ship, and is also proof of ownership of the goods and as evidence of a contract or agreement for the carriage of goods by sea. The shipping party prepares and certifies this document. Usually, the Bill of Lading contains the sender’s name and the name of the ship, cargo data, loading and unloading ports, freight details, payment methods, and the name of the consignee (or commonly written as consignee). If you use the services of a Professional Procurement Company such as Agung Logistics, then you don’t need to take care of import documents because there will be a team that will do it for you.
Step 7: Doing Quality Control
After you make a payment, another importer step is usually to directly choose a shipping method. However, if you are importing for the first time or trying a new supplier, it is highly recommended to do Quality Control (QC) first. This QC means the process of checking the quality of imported products before the product enters another country or in your case, to Indonesia.
Why do you still have to do QC even though you have previously purchased a sample? Just imagine, for example, you buy Chinese imported products in large quantities. After paying in full for the product, shipping, and other customs, you check the product that arrived. As it turned out, there were some products that did not match the previously agreed samples. Of course you have to ask for a return or compensation to the supplier in China. However, is it worth the shipping costs and others that you have to spend to return the defective product to the supplier? Quality Control needs to be carried out in China before goods are imported to maintain product quality while reducing additional costs due to product returns and others.
Step 8: Choosing a Shipping Method
There are several methods of shipping Chinese imports. The two most common shipments are by ship or by airplane. Both of these methods have their respective advantages and disadvantages. Shipping by plane which only takes 1-2 weeks is indeed faster than using ship which takes 3-4 weeks. However, shipping by ship is of course cheaper than using a plane. To choose a shipping method, you should consider the budget, the desired delivery duration, and the type of goods to be imported. If you import products that are relatively heavy and in large quantities, you should choose shipping via ship. This is because Aircraft measures shipping rates from the weight of your product. Meanwhile, shipping rates via ships are measured per cubic meter or in cubication units (area). Consider carefully what shipping method is the most profitable. As trivial as it may seem, the cost of importing can also have a significant impact on your profit margins.
Step 9: Receiving Shipments of Imported Goods
When the goods arrive, you usually have to clear some business through customs (and quarantine if needed). After that, you can then take your imported goods. If you use a door-to-door service, usually you just need to wait for the shipment to arrive at the specified address. When the goods arrive in your hands, you should re-assure the quality of the product, packaging, and so on. Only then do you contact the Supplier to inform them that the goods have arrived and if you have any criticisms and suggestions for them.
Doing Chinese Imports is not as difficult as you think, right? After seeing the article above, are you interested in doing business through imports? Want to sell online but confused about finding suppliers from Alibaba or other suppliers from China? Don’t worry because Agung Logistics will help you import goods from China.
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