The development of various manufacturing industries and the diverse possibilities for providing products have made China one of the major suppliers in the USA market. In this article, we will provide detailed information about the imports from China to the USA to help you get important points in this process.
How to Import Goods from China to the USA
China and the USA have had a sustainable commercial relationship for a long time. With advanced technology, China is one of the major suppliers and can supply a wide range of products to the USA. However, importing is not as simple as you think. Understanding the importing process from China to the USA helps you avoid wasting time and money.
Here are several steps that you should follow:
- The import right:
You are importing goods from a foreign country, in this case, China, your import right is the first thing you need to identify.
When you purchase a small amount of goods that do not have very high value for personal purposes, international delivery services will help ship the goods to your specific location while saving money and time.
But when you are an organization, business, or individual needs to purchase a large amount of goods for commercial purposes, you need to identify your right to import.
When importing from China to the USA, you do not need a U.S. Imports License. However, if you represent an individual, you need to have your company’s social security number or internal revenue service number if you represent a business.
There is one thing you should notice:
The imported goods used for commercial purposes will have many strict requirements because they have to abide by the customs, taxes, and many different complex documents whereas goods used for personal purposes have easier requirements but still ensure basic documents.
Only customs authorities have the right to judge whether your goods are used for personal purposes or not. They will base on the quantity, property, and many relevant documents to have the final judge. If you buy some similar clothes or cosmetics, they have the right to suspect that you use them for commercial purposes.
Therefore, they will require you to provide much evidence to show that you are genuinely using your goods for personal purposes.
- Choosing suitable goods:
You need to choose the suitable goods that you want to import
Before choosing the kind of products you will import from China, you should research the market to find a niche market segment, the need for goods that may sell well in the USA. Choosing the right product ensures your long-term business growth and from there you can build up your brand.
Make sure that your kind of product is not violated when importing to the USA.
In the USA, some kinds of products are prohibited or restricted or need permission from the U.S. Customs and Border Protection to protect the security of the USA, ensure the customer’s health, and preserve domestic plants and animals.
So if you unintentionally or intentionally import them despite the violation, you will be fined and have your goods seized to ensure the payment of the fine, or even be involved in legal issues.
Below are some sorts of products that you need to notice when importing them from China to the USA:
Agricultural products:
- Cheese, milk, and products made from milk. These products are only imported by authorities such as The Department of Health and Human Services, FDA, Center for Food Safety and Nutrition, Food Labeling Office, and the United States Department of Agriculture.
- Fruits, vegetables, and nuts. Some agricultural products have the USA requirements of importing for variety, size, quality, and maturity.
- Livestock is needed to meet the requirements of inspection and quarantine by the Animal and Plant Health Inspection Service (APHIS), Importing animals must be accompanied by their health certificates, and may only be entered through certain ports where quarantine facilities are available.
- Meat and products made from cow, lamb, goat, horse, and even wild animals imported to the USA must abide by the regulations of The United States Department of Agriculture and must be inspected by the Animal and Plant Health Inspection Service (APHIS), and the Food Safety Inspection Service before clearing customs.
- Plants and products made from plants must abide by the regulations of The Department of Agriculture and can be restricted or prohibited.
- Poultry and products made from poultry. Live, frozen, or canned poultry, eggs, and egg products abide by the regulations of APHIS and USDA food safety inspection agencies.
Consumer products:
- Electric household appliances must be labeled electrical standards and power consumption indicators as prescribed by the Ministry of Energy and Federal Trade Commission and under the Energy Policy and Convention Act for the following products: refrigerators, freezers, dishwashers, clothes dryers, water heaters, air conditioners, heating equipment, etc.
- Electric products must abide by the regulations of the Radiation Control For Health and Safety Act 1968 and must have a full declaration as prescribed.
- Foods, medicines, cosmetics, and healthcare equipment must abide by the regulations of the Federal Food, Drug, and Cosmetic Act administered by the FAS agency of the Ministry of Health.
Textiles, wool, and fur products:
- Imported textile fiber products must have stamps, marks, and codes as prescribed in the “Textile Fiber Products Identification Act”.
- Garments made of fur, or parts made of fur imported into the US, except for new products with a unit price less than 7 USD, must be marked with codes as prescribed in the “Fur Products Label Act”.
- Goods bearing a counterfeit trademark or copying, imitating a registered trademark of a US or foreign company, will be prohibited from being imported into the US. You need to submit a copy of the registered trademark in the US to the Customs Commission and save it according to regulations.
- If you import into the United States from China without the permission of the copyright owner is a violation of copyright law, and your goods will be arrested and seized.
- Petroleum and petroleum products. Importing petroleum and petroleum products abides by the US Department of Energy. You do not need to have an import license but require an import authorization from the US Department of Energy.
Identify taxes and calculate costs:
With almost every product imported from China, you need to pay import tax. If you have an intent to import a large amount of goods, you should consider tariffs when sourcing the products.
You need to calculate the costs of your goods before placing an order and paying attention to Incoterms. For instance, with costs of DDP Incoterms include the value of goods, relevant shipment costs after receiving goods, and costs of unloading if the contract does not show that the seller paid from the time of receiving the goods at the place of delivery in the contract.
The costs may be changed during your receiving goods process but do not worry about it. The grounded prediction costs in advance may be useful. After you get your final number when receiving goods, compare it with your prediction so that you can take it as a reference for the next importing process.
- Find a suitable supplier in China:
After knowing the kind of product you want to import, finding a supplier is the next step. You can cooperate with factories or trade companies.
- Choosing factories will be good if you find a product that can be adjusted as required. When working with factories, you can purchase goods at a cheaper price and can customize the design and material. But with the condition that you have to order a large amount of products and there may be less support from the factories.
- Another choice is you can work with trade companies if you want to find a supplier that provides a variety of products. You can control the quality better but on the other hand, you will have less freedom to change the design or material. When cooperating with trade companies, you will pay a higher cost but you will get more support from them.
When working with factories, if you face difficulties with the language, you can hire a translation intermediary to assist because factories usually work with intermediaries. Or if you feel too complicated, you better work with a trade company.
You should pay attention to the regulations of packing, labeling, documents, and insurance because they are very important.
You need to ensure your goods are in strong packing to maintain well-used condition when delivering the goods internationally. Correct labeling helps goods be handled and travel in time. You need to provide customs documents enough for a smooth import process. And having insurance helps you ensure risks of loss or damage to goods that could occur.
You should have a clear negotiation about the export location has the nearest distance with your supplier. This can help you control the goods better and reduce the delivery costs.
In addition, you should not look for a supplier with the lowest cost because low cost is equivalent to high risk. The quality of goods comes along with their price and to be the most effective, you need to develop a healthy relationship with your supplier.
You must have clear communication with the supplier about your technical requirements. When you do not provide your requirements enough, the supplier may go against your wishes because they do not have enough information and do not understand exactly what you need.
The supplier also can save on the costs of production without meeting your quality requirements. This makes you spend more time to adjust the products to meet your expectations.
You should carefully check the material and the process of production of every quote to ensure the quality of the products that you have purchased.
Besides, you should have confidence in your supplier because trust between each other is very important in doing business. The way you trust your supplier might help you get good support when problems happen.
- Follow the delivery process and prepare to receive the goods:
Once you sign a commercial contract, depending on the delivery terms in the contract you can create favorable conditions for domestic customs delivery. Make sure you have a clear understanding of Incoterms to identify the responsibilities and costs of the two parties.
- Receive your goods:
After completing the importing process from China to the USA, you check the quality, label, packaging, and instructions of products.
If the goods meet the requirement, you can inform the supplier in China by direct contact or by sending an email. If there is any problem with the goods then contact to clarify and give feedback to the supplier for consideration in the next delivery in case you still want to work with them.
By following these instructions, you will have an effective method when importing goods from China to the USA. In case you want to release your burden when handling the shipment, you can contact the Bansar freight forwarding company. Bansar is a reliable partner in international shipping operations and can help you simplify your import process from China to the USA.
Essential Tips When Importing from China to the USA
- In terms of documents:
When you import goods from China to the USA, there are many documents that you should prepare such as:
Standard documents include Commercial Invoices, Packing Lists, Bills of Lading (BOL), and Certificates of Origin (CO).
Besides, you should also prepare some additional Potential Documents including Export License, Inspection Certificates, Insurance Certificate, and Other Regulatory Documents.
Depending on different kinds of products you should prepare the appropriate documents. There is some advice for you that is to ask for the Bansar freight forwarding company to consult you with the necessary paperwork related to your particular products.
Moreover, you can also search for information on the website of the U.S. Customs and Border Protection (CBP) for detailed instructions on each type of document for each type of goods.
- In terms of the order time:
The delivery by sea usually takes a long time so you need to plan your purchases long enough. The best advice for you is you should make a plan and purchase goods before 3 months to make sure your supply of goods is maintained without interruption. From there, it helps you to retain customers and increase competitiveness with other rivals.
- In terms of Incoterms:
One way to optimize costs and responsibilities when conducting international transactions is choosing the suitable Incoterms. There are 11 different types of Incoterms depending on the transaction characteristic.
For the buyer, we recommend using DDP Incoterms because it brings the maximum benefits, your job is only to pay the costs, and all the responsibilities and risks are transferred to the seller.
- In terms of tariff:
You also need to know about import tariffs when importing goods to the USA. Different codes of products along with different levels of import tax and is applied to the value of the whole goods. When importing from China to the USA, import tariff ranges from 0% to 37,5% with an average of 5,63%.
- In terms of suppliers:
Once you find a potential supplier, you need to evaluate them to verify their reliability and credibility. This can directly affect your success in selling products in the USA.
You can do this by asking to see their business license, experiences, and achievements they have gained before, and other evidence.
To check the quality of the products, you should ask the supplier to send you a sample before placing a big order.
In addition, you can refer to online reviews from previous buyers to check the legit and the level of satisfaction they can bring.
For the last notice:
You should choose a reliable freight forwarding company. Logistics is vital in commercial operations. Choosing the right freight forwarding company will contribute to ensuring the smooth delivery process and optimizing the costs.
Different Types of Shipping Methods When Importing Goods from China to the USA
When you place big orders, sea freight FCL or LCL is a good choice but you need to wait for quite a long time about 10-30 days.
If your goods have a volume larger than 20 CBM, choosing FCL sea freight will help to save your costs. On the other hand, if the volume of your goods is less than 20 CBM, you should choose LCL sea freight to group with other goods that have the same destination as yours.
In case you need to deliver the goods fast and the goods have a high value, you can choose to ship by air freight. Using this method only takes from 1-5 days but you need to pay a higher price.
1 other type of shipping method is railway freight. The transit time of this method is between sea freight and air freight and also helps you to save your costs.
Conclusion
To wrap it up, importing goods from China to the USA can be a challenge to many businesses but it can be eased when you have Bansar. Through this article, we hope that you already know detailed instructions of this process and can be applied to your business strategy effectively.
FAQs:
1. What to Import from China to The USA?
There are many types of products that you can import from China to the USA such as:
- Lithium batteries are produced mostly in China so you can import them to the USA.
- You can import clothing, shoes, bags, and fashion accessories made from China.
- Products used for home and kitchen decorations.
- You can import toys, games, and educational products to sell for entertainment and educational purposes.
- Furniture and furnishings are also usually imported to the USA.
- You can import fashion jewelry, watches, and other accessories.
- Automotive parts, including replacement parts, and tires also have a high demand.
2. What are the common payment methods for Chinese suppliers?
When conducting transactions, you can use many payment methods such as:
- You can transfer money directly from your bank to the supplier’s bank.
- A letter of Credit (L/C) is a method to ensure your payment.
- For smaller transactions, you can use Paypal or other online payment platforms.
- You can use a credit card to pay, however, transactions often bear the cost of conversion and foreign transaction fees.
- Besides, another method that can be used is online escrow.
