China is on its way to becoming the manufacturing hub of the world. It has more to do with the lower manufacturing costs in China. This has prompted several manufacturers around the world to source their raw material from China. However, there are a few risks associated with importing material from China. Let us check out the risk factors involved and how you would be able to stay safe from these risks.
How To Manage Risks in Importing From China
China has been turning into a major hub for manufacturing as we already stated. But, there are a few inherent issues. Businesses tend to be sceptical about the importing from China for varied reasons. It has more to do with the kind of coverage given to the business practices in China and its products.
The following tips can be helpful enough in staying safe and working through the proper management of your import arrangements.
Find the Right Supplier
Choosing the right supplier is the key to an efficient functioning of your imports arrangement. A reliable supplier would indeed be the first step towards achieving the best relationship in terms of better quality, trust building and avoiding any kind of disputes. In any case, you should always make sure you are covered with Sinosure, so that you’re eligible for deferred payments.
How to choose the best supplier? The best option would be to get a good sourcing agent. There are several sourcing agent sites that list suppliers under different categories and directories. However, going through the huge list can be yet another gruelling task. Choose a sourcing agent that segregates the suppliers depending upon your criteria. Leeline sourcing is one such capable option you can opt for. They offer you valued and trusted suppliers and handles all the issues related to the import from China.
Compliance Factors
China has its own set of rules and guidelines for its exports. Before you can even place an order, ensure that you have understood well about all the rules and regulations that you are expected to comply with.
The regulations will vary depending upon the type of the product you are importing. Do remember that the regulations in your country be entirely different from the regulations imposed in China. Go to the respective sites and study the regulations. It would be ideal to opt for an expert to take care of these issues. Some sourcing agents handle all these tasks and ensure that no non-compliance issues arise at a later stage.
Be Well Aware of the Taxes and Other Duties
If you are importing from China, you need to clear all your VAT and Import Duty payments before the goods can be cleared for entry into your country. This will ideally depend upon the classification of the goods.
If the supplier you have chosen should be capable to help you out in this. But, preparing yourself with proper background work is quite essential. There can be a few hidden costs that you may not be able to understand at the first glance. In fact, a sourcing agent like Leeline sourcing should help you out with these tasks.
The Parting Thoughts
Of course, there are a few risk factors associated with importing from China. But, those risks should be applicable to your imports from any other country as well. If you can understand the concept quite well and work towards achieving them, you can indeed be one of the good success stories yourself in achieving the best.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin