Buying From China

How do you know who is reputable?

[boyshanks]

I have visited a Chinese wholesale website and would like to purchase some items and resell them. Pretty easy. I need to have the color changed. This is a very small job and I will not be visiting China for this. If I had to visit China to make sure this went well, it would not be profitable to do this transaction.

I have been in contact with them via email. I need to have one item changed and have already discussed the Pantone colors for the color. There is a small surcharge for the customization that I am willing to pay and is reasonable. The minimum quantity is not a hurdle. I am having a sample of expressed to me so I can check it out. They said it will take about 1 month to manufacture.

However now I am getting cold feet as it just seems too easy.

SHIPPING-- FedEx, DHL, way too expensive.
How else can I ship a 1-3 boxes with a total weight of 220 lbs (100kgs)? Their port is Ningbo.

RECEIVING-- What about customs? I live in the midwest. Who do I contact?

I don't want to make this more complicated than it needs to be, however, I don't want to lose my money to a scam either.

• What other steps do I need to take?
  
• How do you find manufacturers that are legit, without traveling to China?
  
• Are these internet sites legit?
  
• How can I detect a scam?
  
• How do I ensure I get my items in good condition and they get their money?
  
• What is the most difficult part of importing from China? What should I be concerned about?
  

Thanks in advance for your assistance in this matter.

[edited by: lorax at 12:36 pm (utc) on June 25, 2006]
[edit reason] No URLs please & removed specifics [/edit]

[mattb]

Customs?

Contact a customs broker for clearance.

A full service broker can arrange air freight which will be cheaper than UPS for transport. You could also arrange sea freight which would be the cheapest.

You could arrange to have a 3rd party inspect the goods before shipment. They can email pictures etc.

For payment, a Letter of Credit is typically the payment of choice. It guarantees payment to the supplier and guarantees that you will get a Bill of Lading. It does not guarantee condition of goods. Talk to your medium sized bank or larger for this.

You could ask the vendor for references if you are still unsure.

As in any transaction there will always be risk. Do the best that you can to minimize it.

Also, not knowing the value of your goods, a broker, insurance, and LC will probably be $500 - $700 + freight.

[jbinbpt]

boyshanks,
Welcome to WebmasterWorld.

Contact other air freight companies. I use BAX. I have found their rates to be better than Fedex and DHL.

You can wire transfer the money, but the LC offers you some protections.

[Raymond]

From personal experience, the chance of a Chinese businessmen to really scam you is quite slim. However, some chinese factories have poor quality control (the ones that do not have ISO standards). If you don't bother sending someone there to do some QC work for you, there is a great chance that something will go wrong. Things like incorrect color, poor finishing are quite common.

Are these internet sites legit?

I say at least 99% of them are legitimate. Most of them will have problem communicating in English though.

How do you find manufacturers that are legit, without traveling to China?

You can contact the Chinese embassy and ask them to refer a few manufacturers to you.

How can I detect a scam?

Any international trade contains a risk of being scammed. Use LOC for transaction. That's your safest bet.

How do I ensure I get my items in good condition and they get their money?

Again, use LOC with a clear and precise condition drafted.

[shri]

Or contact a reputable trader in a place like Hong Kong. Sure, they'll make a few percentage points, but you'll be able to communicate in English and they'll have access to the logistics needed to get the order through to you.

The Hong Kong Trade Development council is a great place to start the process.

[Green_Grass]

I don't think you have gone about this the right way..The first thing you check, is the import angle.

If you have not even contacted a custom broker or CHA ( Clearing and forwarding agent ), how do you calculate the import duties ( if any ) payable? Get the Harmonized Codes ( of the product) from the shipper and immediately ask your CHA for import clearance charges, duties ( if any) and if any special documentation and certification is required.

I am not in the US but these are basics required for any import.

For all you know, the item you want may have abnormal import duties ( to protect domestic industry) or may be banned for import? Who knows unless you check.

[Essex_boy]

I have often paid Chinese suppliers cash up front not massive sums by UK standards but by theirs huge, Ive yet to not receive any goods. I should think laws in China for dishonesty are rather heavy, the govt of the day doesnt have much of a sense of humour.

One thing to pick up on though is quality control I have had orders shipped one half of order is perfect quality the other ropey as hell.

Always, always complain because your next order with all be the lower standard. They tend to laugh it off and admit it when questioned.

[Shak]

Anything that can go wrong from China will go wrong.

You can use Air freight (non DHL type service), but quicker than Sea Freight.

You need a customs code to see if there is any duty applicable on your product.

Even though I have been living in China for the last 9 months or so, I still have my own person check every shipment and handle our own shipping via our own agent.

and above all, make sure they have an export license, 99% chances are they won't, but will have a friend who does, np, this is the way it's done there.

Ningbo is famous for low quality items in many industries.

good luck

Shak

[Essex_boy]

Just to add here, Im looking for a new supplier any way I send him a sample of the custom made product and get a price back.

Its 200% more than I currently pay, emailedhim saying no thanks I pay X, LO! Suddenly emails me back saying sorry that was the retail price, not only that but their list price is below what Im paying.

Toe rags.

[taras78]

I usually get my shipments with Sea Freight. Lowest cost, but takes ~6-8 weeks (to Sweden, Northen Europe). Not sure how long it takes to US.

I've even tried their local postal office for smaller deliveries (4-20kg).
Sofar so good... 6/6 packages arrived within a week.

The easiest way is to just ask the Chinese company where you will buy your goods. They can, usually, tell you optimum weight and size for you order, aswell as how to ship it.

[edited by: minnapple at 12:41 am (utc) on July 13, 2006]

[mzadorian]

chances are if the manufacturer has a web site, they probably already are a broker. There are soo many middlemen online that live nearby the real factory and they pretty much take orders from you and go pickup the goods from the real place. Importing is not simple, there are so many things that good arise. I once had a huge shipment and the moron sent out the goods without hte original paperwork to the customs broker, so when it go here, it waited in port for 2 weeks, then was rejected by us customs, becuase orginal documentation was not filled out and handed to them correctly. I think if you get an agent and give a percentage would be the best way to go.