Google Answers Logo
View Question
Q: Importing from China? ( No Answer,   4 Comments )
Subject: Importing from China?
Category: Business and Money > Small Businesses
Asked by: oneguyks-ga
List Price: $10.00
Posted: 09 Sep 2006 12:10 PDT
Expires: 09 Oct 2006 12:10 PDT
Question ID: 763701

I am in Kansas City, MO. A friend of mine just moved to China. He
wants to start import/export business. He will send products to me
here in Kansas City that I would then resell to other
customer/businesses. I have a few questions.

Is this profitable business? 

What are the legal procedures I will have to go through in order to
import legally from China (licenses, levies, etc.).

What kind of things should I import from China? If anyone has
experience with specific items (not general idea) that would help.

Where would I find customers (I can get warehouse) -- preferably other
dealers/businesses that I can resell the products.
There is no answer at this time.

Subject: Re: Importing from China?
From: leohu-ga on 14 Sep 2006 01:08 PDT
1. for this question i think this is possible.because you know in
china the labor cost is very the goods always is cheaper than
in other countrys. is the procedure you must follow if you want to import legally from china
China Import and Export Procedures
China have freedom in undertaking all the import and export activities
including international trade, with the exception of those forbidden
by state laws and regulations.
Some of the import and export procedures are open to choice. Whether
these procedures are necessary is solely decided by the kinds of
import and export and the category of the import and export

I. China Import Procedures

Most of the import businesses in China are transacted in FOB prices.
Only a very small minority of the import commodities are transacted on
CIF terms. The majority of means of payment are in letter of credit

The commodity import include a series of steps from signing a contract
to making the payment. The general import procedures transacted under
the terms of FOB include: writing down an effective contract, writing
L/C, booking space, pushing for shipment, insurance, checking
documents, making payment, customs declaration, receiving the
shipment, inspection, goods delivery and claiming import indemnity.

1. The establishment of an effective import contract

A contract comes into effect once the price quoted based on a written
agreement, or the contract between a Chinese import enterprise and a
foreign supply businessmen is accepted or the price quoted by the
foreign supply businessmen is accepted.

Though China has greatly opened its import business, its import
business is controlled and regulated by a series of laws and
regulations such as the "Foreign Trade Law" and "the Customs Law".
Therefore businesspersons must consult with various laws and
regulations issued by the Chinese government before importing
commodities from overseas.

All products, if no limit is set, can be imported freely while ways of
trade and payment which run contradictory with laws and regulations
are generally forbidden.

2. The writing of a Letter of Credit (L/C)

Buyers must fill in an application according to regulations in the
contract so as to write out a letter of credit once the import
contract is signed. The content of the L/C must conform with the
articles in the contract.

The time decided in the L/C must also fit for the regulations in the contract.

After the L/C is written, buyers can apply for correction in the Bank of China.

3. Booking space and pushing for shipment

The buyers are responsible for booking space if the import contract is
signed under the FOB price terms. At present, the space booking of
China's import trade is generally entrusted to China National Foreign
Trade Transportation Corporation. After the shipment matters are
settled, buyers should inform sellers the time and name of the ship so
that the seller can make preparations and be ready for loading. In the
meantime, buyers should push for the shipment so that the
transportation company can load on time.

4. Insurance

The insurance of import contract under FOB and CFR terms is on the
purchasing side. At present, the insurance of import goods carried
through ocean shipping is entrusted to China National Foreign Trade
Transportation Corporation, which is responsible for signing
preliminary insurance contract with the People's Insurance Company of
China (PICC).

5. Checking documents and making payment

The Bank of China will check the number of documents and contents by
referring to the regulations in the Letter of Credit after receiving
bank drafts and documents. If they are found correct, the Bank of
China will make the payment to the overseas enterprises. The import
enterprises can buy money orders from the Bank of China with Renminbi
according to the announced foreign exchange rate. If something is
found wrong, the bank can inform the other side to make the correction
or stop making the payment.

6. Customs declaration and receiving shipment

Import enterprises, after retiring documents, should prepare for
receiving the imported products. Once the product reached the port of
arrival, they should start customs declaration and receiving the
import articles.

The customs declaration and goods receiving are usually done by China
National Foreign Trade Transportation Corporation instead of import

7. Checking, receiving, and goods delivery

Imported goods must be inspected by commodity inspection
organizations. If the import goods are found missing, damaged or in
short, import enterprises can claim an indemnity with proof from
commodity inspection organizations.

After the above documents are completed, import and export enterprises
must entrust the foreign trade transportation company to pick up goods
and deliver them to ordering enterprises.

8. Claiming an indemnity

Claiming for an indemnity often happens in cases in which foreign
sales parties cannot deliver products, or cannot deliver them on time
or the quality, packaging, amount cannot fit those prescribed in the

The target of claiming for an indemnity is concentrated on the
commodity supply parties, shipping corporations or insurance companies
in line with different degrees in economic losses.

II. China Export Procedures

In China's export business, BOF terms apply only in a small number of
countries and regions which have signed agreements with China on the
same delivery terms. The majority of countries do business on CIF or
CFR terms and get paid in letter of credits. This kind of export
contracts involve many links with complicated procedures and are
associated with many aspects and departments.

Export procedures usually include: the establishment of an export
contract, preparing export commodities, push for documents, checking
and changing documents, booking space, customs declaration, commodity
inspection, insurance, loading, writing documents and settlement of
exchange. Among them, the four procedures such as goods (preparing for
export goods), documents ( push for documents, checking and changing
documents), ships (booking space), payment ( writing a document and
settlement of exchange) are the most important.

3. for the third points,i think you can import some more dependently in labor.
for example small tools,food,clothes,umbrellar

4. for this points,i think it it the easiest way you contact with the
factory which produce this product directly.this is the cheapest way
in china.perhaps i can help you to collect some informations if you
want.i am now in china.

hopefully abover informations can help you some how.
good luck!
Subject: Re: Importing from China?
From: leohu-ga on 14 Sep 2006 01:10 PDT
some more informations for you:
How to Import from China
You may be able to find a new business chance or a new profit growing
drive by being able to directly import products from China. It can be
complicated, but it pays to take the effort for both immediate profit
and long run success.

Find the products of your interest There are many sources to find your
products. Internet is the easiest one to start with. There are many
web listing services. In my view, is the best.
Register your username on website, post the products
of your interest, and you will receive tons of products supply
information and perhaps price list.
Establish relationship with potential suppliers Select a few potential
suppliers to communicate with. Narrow down the ones that you really
want to work with. Discuss the price and trade relationship. Obtain
product samples. Discuss shipping and payment terms. Gather all
necessary information to prepare for placing a trial order.
Understand trade terms and use them Before placing any order, you need
to understand and confirm with your suppliers about shipment terms.
Most popular are FOB and CIF, as well as payment terms. These are
closely related to your landing cost calculation and risk assessment.
You can consult an import management company and a freight forwarder
for detail break-down on the costs and risks. You can also use an
import management company to negotiate the trade terms.
Do your homework on compliance issues You need to understand the
relevant import compliance regulations before hand. Besides US Customs
and Border Protection, other government authorities like USDA, FDA,
DOT, and ATF also regulate the importation. Pay particular attention
when you import textile products from China. Go to the websites of
these agencies to understand, register or download the forms.
Compliance issues can be very complicated for some products. It is
highly recommended to consult a good Customs House Broker before
placing any order.
Select a forwarder and Customs House broker Go to your local
international trade organization/association and Customs office to
find the list. Visit them, and select the one you like. For the first
time importer, I would suggest you to use more individualized
services, because you need more attention than you would expect.
Place a trial order If everything goes fine. Please a trial order with
a written Purchase Order. In the purchase order, besides type out the
detail description of the products and trade terms, list all needed
shipping documents.
Transportation and Customs clearance Your forwarder and Customs broker
are take care of your transportation and Customs clearance. However,
you also need to track the process and assistance, such as providing
additional products information and endorsing bill of lading. You need
to issue a power of attorney to your broker and purchase Customs bond
for your importation.
Receive the products and keep the records. Now you can go to your next
step to sell your products and make profit. Now you are on the track.

Pay attention to the kind of business of your supplier, are they
manufacturers, or 3rd party suppliers? Compare the advantage and
disadvantage. Manufacturers may have faster response in the process of
product development, while 3rd-party suppliers has a broader channels
that can satisfy your other needs in the future. Some are 4th-party
suppliers that I do not recommend to work with.
Establish healthy personal relationship with the key employees of your
supplier is very important in doing business with Chinese people.
You need to have a realistic consideration of the landing cost. There
may be many hidden costs. The best way is to consult an import
management company.
Letter of Credit is commonly used in trade with China. Go to your bank
to get detail formality and cost.
Export agents in China are very commonly hired by China exporters.
Some of these export agents are also 3rd-party suppliers, others just
provide export services.
Neglecting compliance can be very costly. Not only you may need to pay
unexpected and very high Customs duty such as anti-dumping duty, but
also you may risk delay the Customs clearance and pay the expensive
storage fee at the railway station or container yard.
If solid wood packaging material is used, talk to your broker.
Sometimes pallet packing is necessary to reduce the transportation
cost during the process of loading and unloading. Talk to your
forwarder for detail.
Subject: Re: Importing from China?
From: howl-ga on 28 Sep 2006 03:00 PDT
go to you can find many China exporters and goods 
I also have a on-line shop
if you are interest in textile goods
Subject: Re: Importing from China?
From: portrayer-ga on 25 Oct 2006 01:04 PDT
China have freedom in undertaking all the import and export activities
including international trade, with the exception of those forbidden
by state laws and regulations. Some of the import and export
procedures are open to choice. Whether these procedures are necessary
is solely decided by the kinds of import and export and the category
of the import and export commodities.
Details on this website. you
can also find specific law and regulations about exportation.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy