HELP! Need experienced mentor who can help me deal with China...

[Kate Price]

So I've been in contact with suppliers to have some jewelry made for my company for about 6 weeks now, and I'm becoming increasingly frustrated because I can't seem to find a company that I feel remotely comfortable working with.

I've watched a few videos on GlobalSources.com, and that REALLY helped. In fact, it helped so much that I know I need a mentor or someone to help guide me through the process bc I'm in over my head.

My online jewelry company will suffer if I try to do this without support, so here I am. It's still early in the project, no money has been exchanged, and no deals have been struck. I'm still narrowing down contenders, but I'm fairly underwhelmed with the ones I've been in touch with thus far.

I'm positive this can be done right, and I'm not sure where I'm going wrong in terms of finding legitimate and ethical companies to work with who can still give me an edge in terms of competitive pricing. So, if you have experience having things made in China and you wouldn't mind helping me through this process, PLEASE contact me.

 

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[PatrickP]

I would suggest you find one local or at least one you can go visit. Yes you may pay more than if you go overseas but better to get what you pay for especially when you start.

Then as you get larger and have more money you can go overseas.

 

[verial]

I am positioned in China (Taiwan, actually) and have helped several of my clients find suppliers in China.

Your feeling is correct: Most of those you are going to contact with are unprofessional. They will either fail in communications or drop the ball once you give them a project. There few good ones I've seen have been in Hong Kong.

 

[mayana]

I have ordered a few different packaging items directly from China. I'm not 100% sure, but I think the company that I deal with does both import/export of different types of items, since we were discussing potentially exporting my products through them. The contact person's name is Claire. They accepted payments via PayPal (which made me feel really comfortable).

Ningbo Tane Box & Paper Mfg.Inc.
Add: #1678,Huancheng Nanlu, Ningbo, Zhejiang,China

Tel: 0574 28850935
Fax: 0574 28850935
Mobile Phone: 15967862160
Ningbo Tane Box & Paper Factory - Display box, gift box, white box
email: taneboxmfg@gmail.com
MSN: taneboxmfg@live.cn

I found this company through alibaba.com, and I was also very nervous about trying to buy something directly from China. I think the most important thing is to realize that it is going to take a while to communicate your expectations of the products. There will be a lot of back and forth with specs, pictures, etc, since they really do want to make sure that they get the items done correctly. It took me at probably 6 weeks to get my first order, and it was a simple item, so I would expect more with a more complicated product.

And don't forget to ask them if they will take care of shipping for you. This company handles shipping for me, and since the items are small, they can send them via UPS. Shipping will also add a large amount to your total costs, as well. For me, it was about 50% of the total cost of my order.

I agree with the person who suggested that it would be best to see if you can get your items in the U.S. For me, it wasn't possible, but for something like jewelry, you just might be able to find a U.S. supplier.

 

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[PatrickP]

ntapia did you have to deal with US customs?

 

[Vigilante]

Quick tip for import beginners...

keep the cost of goods (not including shipping) below U.S. $2k per shipment, and your shipment will qualify for informal entry into the United States (i.e. no customs bond, no entry paperwork, and no customs hassle what so ever). Informal Entry.

Early on, just make sure you order less than $2k worth of merchandise, even if you need frequent orders to stay in stock. You can have a shipment hitting you every week, and as long as the value of the merchandise in that shipment is less than $2k it qualifies for informal entry into the united states... no need for a customs broker or any other customs related knowledge at that dollar level.

 

[PatrickP]

Quick tip for import beginners...

keep the cost of goods (not including shipping) below U.S. $2k per shipment, and your shipment will qualify for informal entry into the United States (i.e. no customs bond, no entry paperwork, and no customs hassle what so ever). Informal Entry.

Early on, just make sure you order less than $2k worth of merchandise, even if you need frequent orders to stay in stock. You can have a shipment hitting you every week, and as long as the value of the merchandise in that shipment is less than $2k it qualifies for informal entry into the united states... no need for a customs broker or any other customs related knowledge at that dollar level.

WHOA! Great info, never knew anything like that.

 

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[mayana]

Quick tip for import beginners...

keep the cost of goods (not including shipping) below U.S. $2k per shipment, and your shipment will qualify for informal entry into the United States (i.e. no customs bond, no entry paperwork, and no customs hassle what so ever). Informal Entry.

Early on, just make sure you order less than $2k worth of merchandise, even if you need frequent orders to stay in stock. You can have a shipment hitting you every week, and as long as the value of the merchandise in that shipment is less than $2k it qualifies for informal entry into the united states... no need for a customs broker or any other customs related knowledge at that dollar level.

Well, that explains why I didn't have to deal with customs. That is very good to know - thanks!

 

[Vigilante]

Additional clarification to my above comment. You still, as the importer of record, are responsible for the import duties. For example, on these smaller shipments we will do the following :

1. We will have the manufacturer ship from Asia to Minneapolis via. UPS. Typical transit time is 5 days TOTAL.

2. We will prepay the manufacturer for shipping costs, which they will provide for us and we will include in the wire transfer to them that we use to pay for the merchandise.

3. We will separate freight from merchandise costs as separate line items on the purchase order we provide to them, and on the invoice that they provide to us and remit with the shipment

4. As long as the merchandise (excluding shipping costs) is <$2k U.S., it is INFORMAL ENTRY

5. Note that you are still responsible for incoming duty. UPS generally will just invoice you after the fact for the duty. Duty ranges from 0% to 10% or more, so make SURE you know what the duty is before you do this. Don't be SURPRISED by this bill when you get it from UPS.

This is easier than most people ever imagine. The reason that most people DON'T do this... is because they lack knowledge... even the very simple knowledge contained in the 5 steps above. Let me know if you have any additional questions in this regard.

 

[Vigilante]

The next question someone is bound to ask, then, is...

How do you figure out what your duty % is?

The EASIEST way is to get a FREE binding ruling. A binding ruling is awesome, because it is FREE, it is DEFINTE, and it is not then subject to second guessing by UPS or anyone else. You have a permanent ruling on what the duty % is for the item(s) that you are importing. I would recommend taking this step on every item you bring in. Takes about thirty days to get the ruling back.

You can read about this here : https://apps.cbp.gov/erulings/index.asp

Alternatively, if you want to go below radar even more than that, you can ALWAYS just call your local CBP office and ask them the question. You can call the office of customs and border protection, ask for an import specialist, and describe the merchandise to them. They will nearly always give you the correct answer, but then they will almost always advise you to get a binding ruling on it (which is a totally optional process).

Kind of like a doctor that gives you a diagnosis based on your symptoms, but then tells you to get an MRI so that you know for sure.

A list of local phone numbers for CBP can be found here :
U.S. Customs and Border Protection - Contacts

If you choose to go that route, after asking to speak with an import specialist, introduce yourself... tell them you are a brand new importer, want to bring a test shipment in via. informal entry, that you are not working with a freight broker, and are trying to find out the HTS code and duty % for the merchandise you want to bring into the country. (An HTS code is the "Harmonized Tariff Schedule) that is a global code for merchandise. If you try and search for the HTS code yourself, it might take you dozens of hours and tons of frustration. I recommend simply calling, or filing for a binding ruling per above step.)

Remember, under $2k = no broker, no bond, no customs paperwork. You still have to pay the duty, but UPS can help you with that (or USPS if you select a slower shipping method like China Post, etc...)

 

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[Bimmer]

Additional clarification to my above comment. You still, as the importer of record, are responsible for the import duties. For example, on these smaller shipments we will do the following :

1. We will have the manufacturer ship from Asia to Minneapolis via. UPS. Typical transit time is 5 days TOTAL.

2. We will prepay the manufacturer for shipping costs, which they will provide for us and we will include in the wire transfer to them that we use to pay for the merchandise.

3. We will separate freight from merchandise costs as separate line items on the purchase order we provide to them, and on the invoice that they provide to us and remit with the shipment

4. As long as the merchandise (excluding shipping costs) is <$2k U.S., it is INFORMAL ENTRY

5. Note that you are still responsible for incoming duty. UPS generally will just invoice you after the fact for the duty. Duty ranges from 0% to 10% or more, so make SURE you know what the duty is before you do this. Don't be SURPRISED by this bill when you get it from UPS.

This is easier than most people ever imagine. The reason that most people DON'T do this... is because they lack knowledge... even the very simple knowledge contained in the 5 steps above. Let me know if you have any additional questions in this regard.

Hello There Vigilante,

Excuse me for digging up an old thread, But on my research on importing products in to the USA as a foreign company I stumbled on your post

Since my first couple shipments will be under the value of $2K, this seems very interesting.

My problem that I still have is that the receiver of the products (in my case the fulfillment company) will act as the importer of record and will be responsible for the imported goods, right?

Is it a good option to just sent out the products to the fulfillment company, they act as the importer of record and pay the duties (i have to ask if they are OK wit hthat) and they will bill me the costs... or will this still give me some trouble?

Or do you recommend another option?

Thank you very much for your time!

 

[GregK]

Hello There Vigilante,

Excuse me for digging up an old thread, But on my research on importing products in to the USA as a foreign company I stumbled on your post

Since my first couple shipments will be under the value of $2K, this seems very interesting.

My problem that I still have is that the receiver of the products (in my case the fulfillment company) will act as the importer of record and will be responsible for the imported goods, right?

Is it a good option to just sent out the products to the fulfillment company, they act as the importer of record and pay the duties (i have to ask if they are OK wit hthat) and they will bill me the costs... or will this still give me some trouble?

Or do you recommend another option?

Thank you very much for your time!

Hello Bimmer!

i myself have a freightforwarding background with some customs brokerage experience. in what you describe above, the Importer of Record (IOR) can either be you or your client.

normally, you would go overseas, buy from your supplier. the supplier issues a commercial invoice listing you as the consignee and IOR. you would be responsible for all duties/taxes. you can always designate a different "deliver to" party. Note that if you chose a different deliver to party, your customs broker may require you to provide the EIN# from where its going to.

if you want your final client to pay for duties/taxes and ultimately be the IOR then they will need to be listed on the commercial invoice from your supplier. this generally is not attractive as your supplier would know who your customer is and possibly see the actual buying price.

i hope this helps a little

 

[Bimmer]

@GregK Thanks a lot man.

So if I understand you correctly, you are telling me that I as non-US citizen, can import the products into the US by letting the supplier in china sent the products to the fulfillment house in the US.... as long as the supplier is listing me as consignee and IOR on the commercial invoice?

So the shipments will have 2 addresses:
- the delivery adres, which is the fulfillment house in the US
- my address + company details that's listing me as consignee and IOR

Is that correct?

 

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[GregK]

@Bimmer

i noticed in a different thread you stated that you are in NL.
https://www.thefastlaneforum.com/co...rwarding-international-logistics.49044/page-2

if you buy from CN but want to ship directly to US even though you are located in NL you will need your customs broker to swap the paperwork and request that YOUR forwarder keep the supplier confidential. This is a matter of trust and you need to realize because of the set up there is a certain risk that the true shipper information could come out if you are not careful.

basically you need to buy on EXW or FOB basis, then get a freight forwarder involved that's local to you in NL, to ship from CN to USA. You ask your freight forwarder to swap the documents the shipper provides so that the original purchase price and details from the shipper are not known to the buyer in the USA. your freight forwarder will then issue the documents showing you as the shipper.


I hope i am stating things clearly - i generally dont i think


thanks and good luck.

 

[GregK]

@Bimmer - let me back up for a minute.
do you have an office in the USA?

 

[Bimmer]

Hey,

Oh hmm sounds complicated, and maybe not worth at this points as the amount of product that I will be importing to start with wont be so much (not more than $2K per shipment)... I think i would be cheaper by buying the goods in the US than hiring a broker for this shipment.

Nope I do not have a office in the USA

 

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[GregK]

ok no office no problem. you can be a foreign importer of record in the USA, no problem there, just takes a few more steps to register you with the US Government - no biggie.

the $2K threshold is not true in all categories i think. and once your business grows you need to set yourself up with a customs broker. at least this way you are doing it right from the start and dont have to struggle with the set up when you need to be delivering orders.