Why import from China?
2022-10-21 16:10
China has become the engine of the world economy in the last decade. It has competitively priced labor and technology. It is a key country in the production of many of the items that are bought and consumed around the world and therefore imports from China are a key axis of global trade.
Importing products from China can be very beneficial but you need to know the basics. Avoid logistical, transportation, technical or supplier problems by reading this guide or by contacting our expert consultants in importing from China for free.
Sea or air transport to import from China
Air freight accounts for 5% of the total volume of Chinese exports. This is mainly due to its high cost, with urgency being the main reason for choosing this route. It is more efficient in terms of time, but not in terms of cost.
Some types of cargo are restricted and cannot be shipped by air transport and must be shipped by ocean freight. For example, this can happen when the cargo is longer than the aircraft doors or when shipping chemicals. When in doubt, it is always best to consult a specialist advisor.
For import electronics from China or other high value-added, small-volume products, it may pay to do so by airfreight. On the other hand, when importing clothing or accessoriesIn the case of goods such as furniture, machinery, parts or spare parts, or any other lower value-added products that take up space, sea freight is a better option.
How to book a container to import from China
Using our platform you can complete your booking in a few minutes. The only thing you need to know to access the rates of the different shipping lines is the port of origin of your import in China, the port of destination, if you will ship a full container or a maritime groupageand in case you are shipping a full container, the size of the container. There are 20-foot containers, 40 feet y 40 feet High Cube.
Once you enter this information in our search engine you will access a list of prices that vary according to transit time and shipping company. After selecting the rate that best suits your needs you can choose additional services for your shipment and make the payment.
A specialized consultant will contact you to confirm the reservation and start coordinating the pick-up of your import in China.
What are the main shipping lines for imports from China?
Given the enormous potential of this market, it is not surprising that the world's leading shipping lines operate in China. In addition, there is a wide range of domestic companies with which to book your shipping from China.
Documentation required to import from China
These are the generic documents you need to import from China:
Bill of Lading or BLBill of Lading: it is the document evidencing the shipment of goods where all the specifications of the shipment provided by the exporter or importer are indicated.
Packing List (PL): list describing the content, weight and volume of the goods you are importing from China.
Commercial invoice: must include the exporter's data, the importer's fiscal data, the agreed incoterm and the commercial value of the imported goods.
Dispatch authorization: it must be correctly completed, signed and stamped.
Copy of DNI or NIE.
Copy of passport.
Form 036/037: document that must be presented to benefit from the equivalence surcharge, only in the case that you are self-employed.
Specific documentation and information for importing from China
To import from China you must take into account some administrative and production particularities that may condition each operation.
The generic documentation (commercial invoice, packing list, shipping documents...) in many cases must be accompanied by additional documents such as certificates of origin, FORM-A, Test Reports or specific product certifications according to European regulations. Check with your supplier if the product you are importing from China requires any of these specific requirements.
On the other hand, the concept of quality in China differs significantly from that in Europe, so if you are thinking of importing from China, from China Latin we recommend that you make sure of the state of production through a Quality Control inspection in the same factory before shipping the goods.
Main incoterms for imports from China
The incoterms are international terms of trade that regulate the importer and exporter responsibilities in a process of international sale and purchase and reflect the obligations of each one in the transport of the goods.
Depending on the incoterm you choose, you can let the supplier handle the shipment of your products up to one nearby port in China or the entire journey to your door. It is a choice that you will have to take into account when preparing your budget, because depending on the incoterm you choose there will be costs that will be assumed by your supplier and others that will not.
When we import from China we usually do it under the incoterms FOB, CIF and EXW.
The EXW Incoterm is the most used by Chinese suppliers. It does not include any type of service and is often used because they do not have a license to export. In these cases, it is necessary to find an intermediary company through which to manage the export, making the process more difficult and adding risks to the process.
That is why we advise to import under the FOB Incotermwhich includes the customs clearance export. When a Chinese supplier offers or accepts to work under FOB conditions, it means that he knows how to export, that he has experience doing it and that he is trustworthy.
GRI on imports from China
The GRI or General Rate Increase, is an increase in the price of the ocean freight that shipping lines apply, usually at the beginning of the month and on routes originating in Middle and Far East countries.
As the shipping to import from China must be prepared well in advance, it may happen that we choose a rate that fits our budget, but before the freight is shipped a GRI is applied, increasing the shipping price considerably.
If you foresee that this could affect you, consult with our expert import advisors for medium-term secured rates. This way, if you book a freight, the rate will remain unchanged for the next three months even if a GRI has been applied.
Written by Luis