Guide
How to import from China: the short, honest version
Importing from China is not complicated, but it has four cost layers and most first-time buyers only see the first one. Understand all four and you can price an import accurately before you spend anything.
The four cost layers
- Ex-works or FOB goods price. What the factory charges before the goods move. This is the number most suppliers quote you, and the only one they control.
- Freight and insurance. Air express is roughly USD 6–12 per kg door to door and lands in 3–7 days. Sea LCL is cheaper per unit above about 2 cubic metres and takes 25–45 days. The crossover point is usually around 100–200 kg.
- Duty. Determined by the HS code and your country's tariff schedule. Ranges from 0% to well over 20%. Your country's tariff finder gives the authoritative rate, and the HS code is the single most important field to get right.
- Import VAT or sales tax, plus clearance fees. In the EU and UK, import VAT is typically reclaimable if you are VAT-registered. In the US there is no federal import VAT, but state sales tax may apply when you resell.
What actually goes wrong
- Under-declaring value. It is fraud in every major market, it is the fastest way to lose goods, and no legitimate supplier asks you to do it. If a supplier proposes it, walk away.
- Incoterms confusion. "FOB" and "CIF" are not "delivered". Buyers routinely approve an FOB price and are then surprised by a freight invoice three times the size they expected. Ask for DDP if you want a single number.
- No pre-shipment inspection. A factory that ships fast without letting anyone look at the goods is telling you something. Inspection is cheap relative to the loss it prevents.
- Buying from a trade company while believing it is a factory. Not always fatal, but it usually costs 5–15% and adds a communication layer.
- Payment to a personal account. Standard practice in parts of the market, and the reason so many disputes are unrecoverable. Pay the entity that appears on the contract and invoice.
The reliable sequence
| Step | What to pin down |
|---|---|
| Specification | Material, dimensions, tolerance, finish, certification, packaging. In writing. |
| Sample | Physical approval before mass production. Never skip for custom goods. |
| Commercial terms | Price, Incoterm, lead time, payment schedule, defect policy, who owns tooling. |
| Production | In-line photos and a pre-shipment inspection report. |
| Shipping | Freight mode, HS code, duty estimate, documents: invoice, packing list, bill of lading or AWB. |
| After arrival | Quantity and condition check within the carrier's claim window. |
Where a sourcing desk earns its fee
A desk earns its commission on the supplier decision and on the four cost layers. Sourcing a factory that is genuinely cheaper at the specification you need, catching a tolerance error at sample stage rather than after 5,000 units, classifying the goods under the correct HS code, and consolidating two suppliers into one shipment — those are the four places money is won or lost. None of them appear on the factory's price list.