This is a simple breakdown of the complete cost inquiry you will encounter when importing from China. This will also tackle some of the things that you are going to expect when you engage in this kind of business. I’ll try to cover everything in a few steps. When importing products from China, any businessman aims to actually buy a particular good at the lowest price possible without compromising its quality. Also, a good shipping deal and a decent gain must also be considered without hitching up your prices.
If we get this right the first time, we won’t have to worry about future dilemmas. Ok, so let’s start our journey into understanding how much does it costs to import from China and making a cost research.
Here are Five Tips on How to Properly Cost Your New Import Project:
1. Get Your Product Purchasing Cost (PPC) Right from the Start
This is considered as one of the most important things in this business. You need something that’s attractive, serves a purpose for your intended customers and is made of the highest standard. Make sure that the price corresponds, point by point, to your product as specified. You and your supplier must also discuss the price covered from the actual product to the packaging. That might also include the foam moldings.
2. Mind Your Freight Cost
There are a number of freight forwarders who are offering their services at a price that is very cost efficient. You just have to find out which freight mode is best for you. If you want to ship your goods into the country via a quick route, read on.
You can choose from the following three modes of shipment:
- Sea Freight – this is the longest mode but also the cheapest.
- Air Freight – while this mode is the quickest, this is also the most costly among the three.
- Sea and Air Freight – this is just a combination of the two above. However, it is hardly ever used by importers.
Going back to step one, ensure that the supplier includes all the services they can produce in their quotations. Make sure that nothing is overlooked. Missing certain details can set back a delivery and that’s something you have to avoid.
3. Dealing with Customs and Tariff
This is the next logical step. Importing products is subject to custom duties levied by the country you plan to ship to. Thus, you have to know beforehand what category your product belongs to. On the other hand, things such as tariff rates, insurance, and freight and storage must also be dealt with.
- Tariff rates
- Freight and storage and others
Thus, contact your nearest customs broker for more assistance to lessen your workload.
4. Calculating Your Import Costs
You’ll be shelling out money from the time you sourced out your product up to freight and handling, and down to palletizing and storage so make sure to calculate all of your cost. Watch out for side costs, currency exchange fluctuations or rise of raw material costs.
5. Time to Make a Benefit
After calculating all of your costs and making a proper…