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How To Ship Products From China & Avoid Unexpected Costs.
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SUMMARY:
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Hi Guys welcome back to quick tips from Running with China . Today we are going to talk about How To Ship Products From China and How To Avoid Unexpected Costs at Customs.
We are going to take the example of an Amazon Seller. Say you find a profitable product on Alibaba and you have seen the sample, tested it and you are confident with the supplier, you’re going ship an order of 2000 pieces - small and light products, you want to ship it by air.
So there are two things to consider when shipping from China.
First, What's the cost of Shipping?
Second, What is the duty rate that’s going to be applied and are there any customs clearance costs as well when the product arrives?
So usually when you are shipping by air most of the stuff is taken care of by the Freight Forwarding Company as in your Express Company and they will charge you a Premium for that.
But it's easy, simple and uncomplicated. So your duty rate is going be determined by the country you are going to ship in to, like US has a different duty rate for plastic phone cases compared to South Africa or Australia.
Duty rates are all public information, and you can easily find out what the right duty rate is.
Duty rate will be dependent on what you declare the value of your products. So if you have a phone case and you are buying it from china for 3 dollars, then you need to state that the product is worth 3 dollars, and you will be charged a duty rate on that.
Some people might declare 1 dollar for their phone cases, you might be fine there but if you state that all these phone cases are only worth 5 cents, just because you don't want to the pay duty rate, that can trigger a RED FLAG with customs and they may assess you with a higher duty rate then you were expecting to pay.
These are all the things, that need be taken into consideration and it’s very easy to find a freight forwarder or an express company that will take care of all the paperwork for you.
Usually the Express Companies or Freight Forwarders will specialize in a region or types of products and they will know all the ins and outs. They charge a very small fee and they make everything very easy.
My advice for people starting out: find a good Freight Forwarder or Small Express Company, set up a company account with them and rely on them to do most of the importing for you.
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ABOUT RUNNING WITH CHINA
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We are Jamon, Matt, and Terry (JMT), three Americans that have been living in China for a collective 30 years.
On the ground managing offices for some of the world’s largest brands and retailers, we have visited 300+ factories in over 15 provinces across a wide range of product categories. There isn’t a problem in China that we have not encountered.
Along the way, there have been some incredible successes, as well as some spectacular disasters. It’s been a wild ride!
We believe in equipping people interested in this market to avoid pitfalls, abuse, and unsound decision making … the first time. Our goal is to enable and educate you on how to proceed into the Chinese manufacturing world, how ecommerce and retail business can make you some serious money, and how to navigate the information landmine that is sourcing in China.
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