Import from China: Product Ranking

 Despite the general perception of Chinese products, many Australian companies have decided to trust their business community to source both semi-finished products and raw materials. To make this trend clearer, we have prepared a ranking that reviews the main imported objects that come to our country from the Asian giant, since importing from China is very fashionable in these times.

 Main products imported from China:

 Now, without further ado, we proceed to name the main products imported by the Australia. Although it should be noted that the import and export of goods between Australia and China is bilateral, with many Chinese businessmen who have decided to market Australia products or have our workforce.

 1. Women's clothing products: There have been more than 2,000 million articles of this class imported from China.

 2. Telecommunications systems and equipment: With more than 1,500 million items chartered to our country, which highlights the magnificent moment that the sector is experiencing at the European level, since Australia acts as a distributor for other countries in the Asiazone.

 3. Computer components: 1,000 million pieces are import from China by an industry that grows in relevance with each passing year.

 4. Footwear: This product so characteristic of Chinese manufacturing could not be missing in this ranking. In total, more than 770 million shoes, slippers, flip flops and other derivatives are imported to our country.

 5. Steel industry: Some 730 million assembly parts are export from China to Australia , a sector that loses importance as other sectors more focused on the provision of services develop

 6. Electric machines: Another market niche that is on the decline, although it still remains above 600 million imported units.

 Good relations between Australia and China in matters of Agri-food import

 The good moment that the Agri - food importation of Australia products in China is experiencing confirms the commitment of both countries to maintain open trade relations. In this sense, in the first quarter of 2019, 49% more food products were exported than during the same period last year, a trend that is constantly increasing, according to reports from the Ministry of Agriculture.

 Read also: Import and export: what products to sell in China

 

Read also:  How to Import from China - Buy Cheap

Many transport companies have focused their expansion processes towards the Chinese market, given the growing demand for Australia products by their consumers. Freight forwarders, shipping companies, consolidators and customs brokers have seen a business opportunity in the outsourcing of export services to China. In this way, there is a drag effect that is assuming the provision of logistics activities by third parties in order to deliver orders from the Asian continent.

Importing to China: The 10 Steps to a Successful Import

 

 What to import, how to do it, who to trust, are the questions that arise when deciding to import products from China. There is a clear fact: be it a natural person or a company, without the necessary information on the "step by step" or import process, this venture can turn into a nightmare. For this reason, the Asia Pacific Portal of the Library of Congress prepared a “check list” of the key steps to embark on a business adventure with China.

 What to import, how to do it, who to trust, are the questions that arise when deciding to import products from China. There is a clear fact: be it a natural person or a company, without the necessary information on the "step by step" or import process, this venture can turn into a nightmare. For this reason, the Asia Pacific Portal of the Library of Congress prepared a “check list” of the key steps to embark on a business adventure with China.

 Step by Step

 1.- What to import : If you are not clear about which product to import, you can search for them through the Chinese portal, where you will find the companies and their offer classified by category.

 2.- Where to certify the veracity of Chinese exporting companies: One of the bottlenecks when importing is knowing whether the company with which you want to do business exists or not. Although the Chinese government does not manage an official directory, in Chile the Asia Pacific Chamber of Commerce has made great efforts to create a database that certifies and confirms legal registration, import / export permits, experience, payment capabilities and status. financials of exporting companies.

 3.- Contact with exporter: "To do business you have to be friends", as the Chinese say when starting negotiations with any Westerner. For this reason it is crucial for the success of the import to maintain and develop direct contact with the exporter.

 Although this relationship can be built via email, experts in the field recommend, above anything else, “person-to-person” contact and travel to China to meet the exporting company. If this is not possible, one of the alternatives that facilitates and ensures that the business becomes a reality, is to hire the service of a trader. The trader is the person who acts as a bridge between the supplier and the buyer.

 Usually not only handles Chinese, but also cultural codes, essential when closing a transaction.

 4.- Product sample: One way to ensure the quality of imported cargo is to request a product sample. However, great care must be taken when closing the transaction, since blind reliance on the sample does not ensure the quality of the entire shipment. For this reason, the Trader's service is recommended if traveling to China is not an option. If you do not take either of these two alternatives, you will always run the risk of faulty shipments.

 5.- Benefits of FTA: It is essential to find out about the benefits of the trade agreements determined in the Free Trade Agreement between Chile and import  China.  Knowing if the required product has tariff and customs advantages can be decisive in the importation.

 6.- Definition of payment methods: The most common and internationally validated are documentary credit, foreign or bank collection and cash payment (advance).

 Foreign or bank collection refers to payment through commercial banks corresponding to each country. It is necessary to underline that in this type of payment, the bank only complies with the instructions given by the drawer.

 Cash payment is the riskiest, although if the company meets all the certification requirements, it can provide greater security at the time of the transaction.

 If the operation is carried out by a certified broker or Trader, the risk of scams in this regard is reduced.

 7.- Shipping operation, contracting freight and insurance: If the purchase clause agreed by the parties (Inco terms) requires the supplier to contract freight and / or insurance, it must do so and confirm to the buyer the means of transport that the merchandise, departure date, flight number, ship name, travel delay time and estimated date of arrival.

 If there are no clauses that hold the provider of these services responsible, you must arrange the delivery of goods at a place established by both. Transportation is the buyer's full responsibility, in addition to coordinating with a customs agent the reception of the products at the port of arrival and the internment.

 8.- Reception of products: Upon receipt of the product at the customs office of entry, the customs agent will proceed to the customs processing that allows the admission of the product, the payment corresponding to the taxes and charges to which it is released. The importer will receive from the commercial bank the documents that will be used by the agent to carry out the customs destination.

 9.- Customs processing: This stage is also carried out by a customs agent, having three important aspects under his responsibility: customs valuation, where the payment of taxes is determined. The tariff classification, where the tariff preferences that products have when negotiated in the FTA are set. And finally, the description of the merchandise and registration of the products in the Customs databases.

10.- Withdrawal of merchandise: Upon declaration of acceptance of the income. Customs determines the selection of Capacity, being able to determine Physical, Documentary, or No Review.

 If the operation is selected for "Physical Gauging" or "Documentary", upon cancellation of the internment charges, Customs officials certify that there is agreement between documents and physical merchandise contained in the shipments, in addition to supervising the correct application of legal regulations current.

 If the operation was selected as "No Review", once the internment charges are canceled, the goods are immediately removed.

  Imports can be carried out without problems if you have the key knowledge and are attentive to bureaucratic and cultural details. A good option to reduce uncertainty is to seek advice from Chambers of Commerce such as the Chilean Chinese Chamber of Commerce, Industry and Tourism.

 Facts to consider: Cultural differences

 Not knowing the cultural differences have also been one of the most common mistakes of entrepreneurs when starting a business with China. The negotiation process is conditioned by their customs and traditions, and trust is one of the most valued characteristics in a commercial exchange.

  The requirement, and meticulousness in a job is essential for a Chinese businessman, and these singularities should also be part of those who do business with them, especially if they are foreigners. Likewise, listening before you speak, and showing an honest interest in the other party, will facilitate communication considerably. The key to achieving a good agreement is to be culturally sensitive, careful and above all flexible to your culture when starting a business.

Read also: What do I need to know to import and export goods?

5 Common Mistakes Companies Make When Importing From China ... How To Avoid Them

 

Since the entry into force of the Chile-China FTA, trade with the Asian giant has grown considerably, at rates above 15% per year, which made China the first trading partner of Chile in 2009. Due to this, the 98% of products of Chinese origin can enter our country with zero tariffs, which has significantly increased the number of companies and entrepreneurs who have seen in the eastern country a great opportunity to do business.

 However, there is still a certain degree of ignorance about the import process, generating typical errors that can be avoided.

 Knowledge of the Regulations

 Most of the products can be entered into Chile without any problem, but there are categories of products that require visas, approvals or special certifications before entering the country: Products of plant or animal origin, fertilizers, chemicals, medicines, cosmetics, Food, cement, among others, are products that require special authorizations. It is important for the importer to know what the specific requirements are for importing a particular product, and what is the protocol for certification, approval or entry authorization .

 Choice of Provider

 There are people who send money to suppliers without even being sure that the company exists. Fortunately, there are mechanisms for background checking on Chinese companies, and even intermediated means of payment, that make a transaction much more secure now than it was a few years ago. In the personal or small-scale shopping sites,  there are evaluations of people who have bought before from the same supplier, and there is even the possibility of confirming the payment once the product has arrived in Chile , which makes an import operation very safe. In the case of slightly larger purchases, although there are no evaluations, it is possible Finding out if the company is officially registered, how long it has been operating, if it has export experience, if it accepts secure payment methods, among other things,  and it is absolutely necessary to do before importing.

 Cost calculation

 This is a very important issue, and that sometimes makes the difference between a good business, a regular one, and a downright bad one. Many people consider only the cost of the product and the cost of shipping, but forget to include expenses such as import tax (zero if it comes with a certificate of origin), VAT, and other expenses that occur locally (deconsolidation, customs agent , other local expenses). In imports of less than one container, the expenses in Chile associated with an import can reach up to 40 or 50% of all expenses incurred (not counting the cost of the product). Before importing,  the importer must calculate all expenses until the product reaches his home or warehouse.

 Product specification

 Some importers make the mistake of buying without knowing exactly what they are buying, or without providing the necessary technical information so that the supplier knows what the importer wants. For this reason, it is necessary to  specify in as much detail as possible the product that is being sought, via a technical sheet, request samples, and then carry out a cargo inspection at origin  to guarantee that what is being shipped corresponds to the agreed specifications.

 Price expectations

 Many people think that everything in China is extremely cheap, which is partly true, since many profits can be generated by Import products from China. However, as in any other order of things, the higher the quality of the product, the higher the price and the higher the volumes, the lower the prices. It is important to manage and understand the cultural aspects that affect a negotiation with a Chinese supplier, and not to haggle too much on prices, especially if gray areas are left in the product specification and the volumes to be imported are not too high , since it is possible encounter surprises when receiving the product.

 For those who are looking for alternatives in China, “finding out the specific regulations for the product I want to import, take the time to look for and choose a supplier that suits my needs as an importer, be clear about the costs and expenses that are generated by When importing the product, specify as much as possible the product that I want to import and understand the way of negotiating of the Chinese suppliers. These aspects can make the difference between a successful business and another not so much ”.

Jada International Trading Company

 

We are fast developing international trading company located in beautiful Queensland, Australia. We have been involved in Import & Export industry for more than 10 years. Though Australian market is intensely competitive market, we are still the finalist of Australian small Business Award 2010 by Australian Business & IT Expo.

We are mainly serving Australian companies who are interested in importing from China and want to sell to Chinese market. We are providing series of quality services for Australian companies who want to initiate international business relation with China.