subject: How Much Does It Cost To Import From China - Import Calculator [print this page] Vast globalization has enabled many small scale and large scale groups to locate sources overseas for their specific products. China stands out as the number one country to import from because of its cost-efficient labor. There is a wide range of high quality products at very good bargains available to importers today. A large number of businessmen have invested in this venture as it promises large profit margins. If you're just about to start in the world of importation, you might have faced the question, how much does it cost to import from China?
Since China expressed its desire to join the World Trade Organization (WTO) in 2001, it has opened its doors to international trading. Although it adheres to the rules and policies of the organization, you must also bear in mind that it has intricate local policies as well. If you want to venture into this type of business, you must know the different kinds of costs involved in order to attain long-term success.
The Cost of the Import Product
As an entrepreneur, one of the crucial things you have to know and view is proper sourcing and supply of your goods. There is more than just bargaining for a low price involved in the process. Buying from a direct supplier or a third party agent should be well detailed. This is for you to avoid hidden costs that may arise in the whole process. Take note: The cost of goods depends on the quantity you are going to order.
Rule of thumb: the more you order, the better the rates.
Import Tax and VAT
Import taxes are often attached to imported commodities from china. This is also known as import duty or import tariff. This is collected by the customs authority or any regulating body for every shipment that comes into a particular country. This is how the local government controls the influx of items from foreign countries in your native land. Taxes attached actually depend on the items involved and point of origin. Take note of properly classifying your items, not doing so could lead to getting overcharged by customs. Using the United States Harmonized Tariff Schedule can help calculate the proper import taxes for every item involved. Every country adheres to a unique set of calculations for its tax rates on every imported product brought in.
Meanwhile, there is also another fee called VAT, which is usually assessed on products that are imported into Europe and other countries with a VAT system. However, VAT can be refunded. Euro VAT can help in determining the VAT charge and then identify the appropriate method to make a refund.
Hire an Inspection Company to Check on the Quality of Your Imported Goods
The quality of goods should be seen by a local inspection team you hired to help you check. You can then ask for a detailed report if the quality of the packages is exactly what you expected. Provide a checklist of things to watch out for to your inspection team. Without this, the inspection company may think the merchandise is okay even though it is not. Inspections should be done at regular intervals. This little step may save you a lot of headaches. Normally, this is done a few days before shipping. This will help avoid the delivery of any defective or non conforming goods.
Remember that it is your responsibility of ensure the quality of your imported goods. Therefore, you have to make sure that the supplier's shipment meets all the standards required by the government. Otherwise, you might end up with confiscated goods.
Shipping Rate
Be diligent in the search for the lowest cost in transporting your goods from China to your country. Customs brokers in many cases can be your new best friends. Strike a deal with your forwarding company. With this, you can avail for a cheaper shipping rate for your bulky volume of goods.
It is also crucial to make sure you are knowledgeable with all the options you most likely will avail for shipping. Understand that with the FOB or Free on Board, you assume all responsibility for your items' costs, risks and or damages. You are responsible for your own items as soon as it is loaded into the ship. The FOB value includes the original cost of goods, transportation costs, insurance costs and the costs of loading goods onto the vessel. There is also the CIF or Cost, Insurance, and Freight, which signifies that the seller is responsible for the goods once they are onboard. Therefore, you will pay the Cost and freight for your goods to be delivered to you.
As a recap, this is for the Cost of goods, shipping freight and insurance. Cost and freight is the last on the list. Adding the value of the goods with the costs and freight determines your c&f. The final price includes the Cost of goods and shipping freight.
