Top 10 import suggestions from China

 Top 10 import suggestions from China

Suppliers all around the world provide a wide range of products that may be suitable for your company. You may be able to discover lower-cost materials, providing you a competitive advantage, or new supplies, allowing you to market a whole different product.

In January 2017, China was the UK's second-largest importer (after Germany) with a total value of £3.68 billion.

There are a lot of factors to consider while importing. This might include everything from maintaining long-distance connections to arranging foreign transportation and customs clearance.

If you're thinking about importing from China, check out our top 10 suggestions for getting started.

1) Make a list of your import goals.

Before you begin importing, it's a good idea to have a clear notion of what you want to accomplish. You may be looking to China for a lower-cost supply source or to import items that aren't yet accessible in the Philippines to offer to your clients. Simultaneously, importing should be consistent with your whole business plan.

2) Locate a reputable, legitimate, and dependable source.

Examine the supplier's creditworthiness and ability to achieve your quality criteria. You should evaluate product quality and ensure that the items you purchase are appropriate. You should find out if the provider outsources any work to subcontractors.

To create a good connection with your suppliers, you will also need to grasp the culture of the Chinese market. Mandarin (China's official language) is growing increasingly essential. It is spoken by more than one billion people globally, more than any other language. Making an effort to learn a few brief words can aid in the development of mutual trust.

3) Strike the best bargain possible.

Understanding your own strengths and limitations, as well as the goals of your supplier, allows you to negotiate the best bargain. For example, if you have a strong cash position, you may offer to pay more quickly in exchange for a lower price.

The Chinese believe that prospective business partners should establish a connection first, and that if that relationship is successful, economic transactions will follow. The goal of cultivating intimate ties is to create guanxi (pronounced gwan shee), which are essentially social or economic partnerships based on mutual interest and profit.

4) Reduce risk by having a well-defined contract.

It is critical to have a clear contract outlining the payment and delivery parameters you have agreed upon. Using globally agreed-upon Incoterms (International Commercial Terms) reduces the chance of delivery issues or misunderstandings. The contract should also specify when and in what currency payment is due, as well as the payment mechanism to be employed.

5) Decide the kind of transportation you will employ.

When deciding how to import, you must determine whether to manage logistics yourself or outsource the task to a freight forwarder.

When importing from China, the two primary modes of transport are air and sea. Shipping by water may be appropriate if your company has to carry huge amounts but is not under time constraints. Shipping via air, on the other hand, may be more suited if you need your things urgently and with better levels of protection.

If you are importing tiny things, you should consider importing via post. All Chinese products arriving in the PH via post must be reported to HM Revenue & Customs. A completed declaration form CN22 or CN23 must be attached by the sender. For goods valued more than £2,000, a complete Single Administrative Document declaration is required.

6) Notify HMRC of your imports.

Imports into the Philippines from countries outside than the European Union (EU) must be disclosed to HM Revenue & Customs (HMRC). This is often accomplished through the use of the Single Administrative Document (SAD), also known as form C88.

7) Become acquainted with the PHTrade Tariff.

The United Kingdom's Integrated Tariff, commonly known as the Tariff, is a handbook that explains what you as an importer or exporter need to know and the duty rates you should pay. The Tariff may be used to determine the current tariff and import VAT rates, as well as whether your items require a license.

8) Recognize the significance of commodity codes

When trading with China, you must determine the relevant commodity code for your items in order to correctly complete out customs paperwork. For imports from outside the EU, the code is a ten-digit number. Once you've determined the commodity code, you may check up additional pertinent information such as duty rates and any import or export limitations.

9) Determine whether an import license is required.

Importing products from China into the Philippines may need the acquisition of an import license. Import restrictions apply to a variety of items, including weapons, food, and textiles.

10) Import taxes and duties

As a business, you must understand if you must pay import VAT and tax on your goods before they can be cleared for entrance into the Philippines. Imports may be subject to import duty, depending on the categorization of the items and their origin. VAT is imposed at the same rate on items imported from outside the European Union as if they were purchased in the Philippines (currently 20 percent ).