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Sharing my lifetime experience in export/import. Product sourcing specialist.

Walter Hay

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Hi @Walter Hay ,

Apologies if this has already been covered, but does your book discuss product modification, as well as checklist of costs to consider regarding importing ?

Thanks for the great posts.
Yes the book does cover both of those subjects, although product modification is dealt with under the broader heading: Ch. 12.14 Custom Made Products. Regarding costs, see Ch.14 Calculating Actual Costs.

I haven't previously published my book's contents list, so here it is. This is from the current edition, but I expect to have the revised 2018 edition available by Spring and all who have previously bought copies will be entitled to free downloads of the new edition.

It is also worth noting that there are 75 sub-sections in those chapters, not counting the numerous sub-sections in Ch. 33 Glossary of Terms. Likewise in Ch. 19, Countries Other Than China? there are 27 links to B2B sites and sourcing locations other than B2B sites, together with specific instructions on how to carry out searches for a number of those sites.

I am providing all this detail because I often receive PMs asking for such information, as well as the occasional post.

TABLE OF CONTENTS
1 Is Importing Complicated?
2 Getting Started
3 Rules And Regulations
4 Freight
5 Understanding Agencies And Distributorships
6 Standards
7 Product Sourcing
8 Alibaba.com
9 Globalsources.com
10 My Preferred B2B Sourcing Platforms
11 How To Get Suppliers To Come To You
12 Assessing Suppliers
13 Samples And Small Orders
14 Calculating Actual Costs
15 Payment Terms
16 Traveling To Source Supplies
17 Order Procedure And Checklist
18 Drop-Shipping Explained
19 Countries Other Than China?
20 “Just In Time” Ordering System
21 Sources Of Free Information
22 Fulfillment Services
23 Agents, Traders, Wholesalers – Definitions
24 Manufacturers Not Wholesalers – Why?
25 Business Registration and Tax ID
26 Buying Locally
27 Capital Requirements For Importing
28 Inspection Services
29 Certificates
30 Minimum Order Quantities (MOQs), Haggling, and Discounts For Big Orders
31 Quality
32 Public Holidays
33 Glossary Of Terms


Walter
 
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Hi Walter, not sure if you're familiar with this. Is it true that apparel and other textile products that are shipped to the US (via DHL and other similar services) need to pay some kind of customs duties taxes?

If so, is the payment made when I call for the delivery service, or is it an additional payment after the carton has arrived on US shores?

I'm not from the US but shipping the goods there to a fulfillment center.

Thanks!
 

Walter Hay

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Hi Walter, not sure if you're familiar with this. Is it true that apparel and other textile products that are shipped to the US (via DHL and other similar services) need to pay some kind of customs duties taxes?

If so, is the payment made when I call for the delivery service, or is it an additional payment after the carton has arrived on US shores?

I'm not from the US but shipping the goods there to a fulfillment center.

Thanks!
If a shipment is less than $2500 it will require an informal entry and not require a formal entry.

Courier services such as DHL have special rules applying that usually result in there being no duty or taxes collected BUT.... textile products are a different story. Even if handled by a courier service they will require an entry and will be subject to duty and tax unless the value is under $250.

Any payments due will be made to the courier before they will deliver. Occasionally they give you a defacto account and send you a bill afterwards. You never pay the supplier unless the terms are DDP. Delivered duty paid. Very few suppliers will offer that.

Beware of declaring values less than the real value, even if your supplier suggests it. Chances of getting caught are high, and fines can run into the thousands.

Walter
 
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WARNING ABOUT TRADE ASSURANCE

Today I replied to a post by @MoneyDoc, about his disastrous experience using Alibaba's Trade Assurance. See his thread here: For those that use Alibaba Trade Assurance.

I have posted about Trade Assurance numerous times, both here in my AMA and also in response to posts in other threads. Trade Assurance is a great example of the smoke and mirrors that you will find on almost all B2B sites, not only Alibaba.

In my book I identify the only B2B site I know that you can trust, but unfortunately it only has hundreds of thousands of suppliers listed, not millions as found on Alibaba etc.

I would recommend that any Fastlaner thinking of using Trade Assurance should do a search for my posts, not only on this thread. Here is a link to my most recent comprehensive post: GOLD - Sharing my lifetime experience in export/import. Product sourcing specialist.

Walter




This is extremely helpful info and thanks @MoneyDoc for the thread. I recently placed an order with a factory for accessories and the material and sizes were all incorrect (2.5K value). I shipped them all back to the factory as he promised me a refund. It's still in transit but he's becoming very distant with his communications lately. I was thinking to myself, if he doesn't refund me, i'll just get it via Trade Assurance, but it's good to know that it's practically useless, so I might just be more patient and try to persuade him with getting the refund directly as opposed to going through Alibaba.
 

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If a shipment is less than $2500 it will require an informal entry and not require a formal entry.

Courier services such as DHL have special rules applying that usually result in there being no duty or taxes collected BUT.... textile products are a different story. Even if handled by a courier service they will require an entry and will be subject to duty and tax unless the value is under $250.

Any payments due will be made to the courier before they will deliver. Occasionally they give you a defacto account and send you a bill afterwards. You never pay the supplier unless the terms are DDP. Delivered duty paid. Very few suppliers will offer that.

Beware of declaring values less than the real value, even if your supplier suggests it. Chances of getting caught are high, and fines can run into the thousands.

Walter

Thanks a lot Walter!
 

Walter Hay

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This is extremely helpful info and thanks @MoneyDoc for the thread. I recently placed an order with a factory for accessories and the material and sizes were all incorrect (2.5K value). I shipped them all back to the factory as he promised me a refund. It's still in transit but he's becoming very distant with his communications lately. I was thinking to myself, if he doesn't refund me, i'll just get it via Trade Assurance, but it's good to know that it's practically useless, so I might just be more patient and try to persuade him with getting the refund directly as opposed to going through Alibaba.
The best hope of getting any compensation is to convince such a supplier that you intend placing further orders because you understand that mistakes are sometimes made, and you like his company's design capability.

Walter
 
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Hi walter,

How are you doing? Walter I have been thinking if services like sourcing (used item) from an individual exist in the usa? For example, I require fitness equipment and someone in Chicago is selling it and I want to purchase that particular item through a reliable company and ship it to India. Just wondering if any such kind of things are possible for individuals since I work for a trading firm we have tie-ups with logistics companies who pick up our material worth millions from the manufacturers but I'm not sure if any such services are available when the amount is just 1000 to 2000 bucks max.
 

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I suggest that you look for experienced, go-getter people in the fitness industry and put a proposal to them.

You might need to find people in several locations willing to hold the items for you until your logistics organization to pick it up and ship for you.

Walter
 

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I suggest that you look for experienced, go-getter people in the fitness industry and put a proposal to them.

You might need to find people in several locations willing to hold the items for you until your logistics organization to pick it up and ship for you.

Walter

Thank you for the suggestion but do you think it will be possible to form a trust when doing such business where the chances of getting cheated are high?
 
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Walter Hay

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Thank you for the suggestion but do you think it will be possible to form a trust when doing such business where the chances of getting cheated are high?
That is the biggest problem and for this reason at least a personal meeting would be necessary, although not foolproof.

I don't know of any established services that would handle such work for you.

Walter
 

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That is the biggest problem and for this reason at least a personal meeting would be necessary, although not foolproof.

I don't know of any established services that would handle such work for you.

Walter

I totally agree about a personal meeting. Further, I have been a member of one of the fitness related forums where there are several enthusiasts who have helped in sourcing fitness equipment locally. But none of them ever had overseas tie up. These people are trustworthy (but cant be guaranteed when money is involved). Hope it works out.
 

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Hey Walter, how are you doing?

I'm having a certain issue in my business and I could only thought about you when I decided to ask an expert for direction. Here is my situation:

My supplier sent my products (empty plastic jars) and paid U$630 of shipping via Fedex to Brazil. When the Fedex agent called me to inform about the tax - which was absurdly high - he veemently affirmed that the value paid to ship was U$1700 (which is impossible, because the total order value was about U$900).

When I contacted the supplier he told me that it must be a mistake and he only paid U$630 and that he's going to call Fedex tomorrow.

I asked him to send me a document that proves this was the value he paid to ship and I'll make an appeal to fedex to recalculate the tax. Can you guide me on what the possible causes and solutions on this case may be?

I really appreciate your help. Thanks in advance =)
 
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Hey Walter, how are you doing?

I'm having a certain issue in my business and I could only thought about you when I decided to ask an expert for direction. Here is my situation:

My supplier sent my products (empty plastic jars) and paid U$630 of shipping via Fedex to Brazil. When the Fedex agent called me to inform about the tax - which was absurdly high - he veemently affirmed that the value paid to ship was U$1700 (which is impossible, because the total order value was about U$900).

When I contacted the supplier he told me that it must be a mistake and he only paid U$630 and that he's going to call Fedex tomorrow.

I asked him to send me a document that proves this was the value he paid to ship and I'll make an appeal to fedex to recalculate the tax. Can you guide me on what the possible causes and solutions on this case may be?

I really appreciate your help. Thanks in advance =)
I'm sorry to learn about your problem, but unfortunately this kind of situation occurs often in Brazil.

I suspect that either:
  • The FedEx agent you have been talking to is corrupt and if so he/she will probably want payment outside the FedEx system, or
  • A Customs officer is corrupt and is demanding money from the FedEx agent.
You need to contact a senior person in FedEx, or at least someone other than the one who has already contacted you.

I posted on a similar issue in relation to imports to Brazil in this post:
GOLD - Sharing my lifetime experience in export/import. Product sourcing specialist.

Your best chance of success is to hire a Customs Broker to do the clearance for you. At this stage, an import entry has almost certainly not been lodged with Customs, so if you find a good Customs Broker they should be able to intervene and handle the clearance for you.

Walter
 

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Hi again Walter, do you feel it's very expensive to ship textile/fabric from Thailand to the US (GA,PA,NC,SC and other East coast states)?

My manufacturer is quoting USD285 to ship a 15 KG (33 lbs) product to one of the east coast state and it feels expensive to me (DHL).

I wonder if there's some other alternative method of shipping to halve the cost (besides sea freight as that's too long).
 

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Hi again Walter, do you feel it's very expensive to ship textile/fabric from Thailand to the US (GA,PA,NC,SC and other East coast states)?

My manufacturer is quoting USD285 to ship a 15 KG (33 lbs) product to one of the east coast state and it feels expensive to me (DHL).

I wonder if there's some other alternative method of shipping to halve the cost (besides sea freight as that's too long).
I would regard that cost as grossly excessive. It would seem that either your supplier or DHL must be trying to take advantage of you.

Search for air freight consolidators and get quotes, being sure to specify door to door. You will need the dimensions of the package, because textiles can sometimes be bulky but light and that can result in freight costing a lot more than you would expect.

Walter
 
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I would regard that cost as grossly excessive. It would seem that either your supplier or DHL must be trying to take advantage of you.

Search for air freight consolidators and get quotes, being sure to specify door to door. You will need the dimensions of the package, because textiles can sometimes be bulky but light and that can result in freight costing a lot more than you would expect.

Walter

Thanks Walter, would you consider something like this: Freight Forwarder in Bangkok, Thailand | AXIUM SHIPPING to be an air freight consolidator?

If I'm not wrong, an air freight consolidator basically sends people down to my manufacturer, collect the goods, then ship it together with goods from other companies to the similar place to get a cheaper rate?

EDIT: Just to add, I just purchased your book! Cheers! :innocent: :halo:
 
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Walter Hay

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Thanks Walter, would you consider something like this: Freight Forwarder in Bangkok, Thailand | AXIUM SHIPPING to be an air freight consolidator?

If I'm not wrong, an air freight consolidator basically sends people down to my manufacturer, collect the goods, then ship it together with goods from other companies to the similar place to get a cheaper rate?

EDIT: Just to add, I just purchased your book! Cheers! :innocent: :halo:
Strictly speaking, Axium is a freight forwarder.

There is an overlap in the definitions of freight forwarders and freight consolidators, and in most cases both classes of business will carry out the same roles. Not all freight forwarders will provide consolidator rates on freight, and not all freight consolidators will handle all the necessary functions to handle a shipment from point A to point B.

The primary distinction is that a true consolidator buys freight capacity at a volume discount, and sells that capacity to people wanting to ship various size shipments, very often quite small. They should, and usually do, pass on some of the discount they have obtained.

In either case you must obtain quotes and you should always specify exactly what you want. In most cases you will want an all-inclusive cost from the pick up point at your supplier's premises to delivery to your specified address, including Customs clearance.

Note: Clearance costs never include duty and tax. These are always your responsibility. The exception is the rarely used DDP.

Walter
 

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Strictly speaking, Axium is a freight forwarder.

There is an overlap in the definitions of freight forwarders and freight consolidators, and in most cases both classes of business will carry out the same roles. Not all freight forwarders will provide consolidator rates on freight, and not all freight consolidators will handle all the necessary functions to handle a shipment from point A to point B.

The primary distinction is that a true consolidator buys freight capacity at a volume discount, and sells that capacity to people wanting to ship various size shipments, very often quite small. They should, and usually do, pass on some of the discount they have obtained.

In either case you must obtain quotes and you should always specify exactly what you want. In most cases you will want an all-inclusive cost from the pick up point at your supplier's premises to delivery to your specified address, including Customs clearance.

Note: Clearance costs never include duty and tax. These are always your responsibility. The exception is the rarely used DDP.

Walter

Thanks Walter, if I'm in Singapore, and the manu is in Thailand, and the warehouse is in the US, does it matter which country the freight consolidation company is from? Is it preferable for it to be in the same country as the manu?
 
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Walter Hay

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Thanks Walter, if I'm in Singapore, and the manu is in Thailand, and the warehouse is in the US, does it matter which country the freight consolidation company is from? Is it preferable for it to be in the same country as the manu?
It is usually best for the consolidator to be in the same country as the manufacturer, but if using a freight forwarder I would choose one in the destination country.

Walter
 
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Walter Hay

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Thanks for Rep transfer.

I don't know where to post this, so I hope those who have sent me reps will see this post.

I have received some generous rep transfers, and because they come from members whose PMs are blocked I can't thank them directly.

So..... thank you to all who have sent me reps. If I have missed directly responding to any, please accept my apologies and be assured that I appreciate being appreciated.

Somehow I think maybe there is a role for a thread that enables members to acknowledge rep transfers.

Walter
 

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Walter, is there a good time and a bad time to ask for credit terms from a supplier? I've been really impressed with my new supplier, who is providing my first custom designed product, and unlike my first supplier these folks have been top notch in terms of professionalism, QA, etc.

I've placed two large orders so far, so I didn't want to jump the gun, but with the kind of volume I'm going to need, credit terms (Net 30? Not sure what the standard is) would be exceedingly helpful.
 
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Walter, is there a good time and a bad time to ask for credit terms from a supplier? I've been really impressed with my new supplier, who is providing my first custom designed product, and unlike my first supplier these folks have been top notch in terms of professionalism, QA, etc.

I've placed two large orders so far, so I didn't want to jump the gun, but with the kind of volume I'm going to need, credit terms (Net 30? Not sure what the standard is) would be exceedingly helpful.
I think you have my book, so see Chapter 15.2. The main point is to establish a good relationship with your supplier. Always be polite, alwyas do whatever you say you will do, and be sure that they know that you are an ethical person.

It's no use simply telling them that. You must show it by your actions. One of the best ways is to tell them early on that you don't want fake invoices. That will distinguish you from most of their customers, many of whom will have asked for that illegal favor.

Walter
 

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Hey Walter,

Justin here, been a long time..
we spoke via PAC email messages back and forth couple years ago verifying chinese suppliers of hotel slippers..
Mary says to forward my messages to you through her.. is there any way you can pm me?
reading your 2017 book right now..
thanks
 
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Hi Justin, It's good to hear from you. I remember communicating with you about that question. I hope it finished up with good results for you.

The reason Mary says to forward messages to me through her is that my support team can often answer questions that people put to me. I have given them a lot of training and they can answer most questions that people are asking.

The only questions they forward to me are ones they can't answer. My work load is high (for a 79 year old retiree) and the referral through my support team saves me a lot of time, but in cases such as yours I sometimes communicate direct. I will send you a PM with my email address, and hope I can help you.

Walter
 

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Hey @Walter Hay
Thanks for all the support on this impressive and extremely valuable thread.

I've been reading your book as I'm looking to start in eCommerce and I had a question regarding 'exclusivity'. I know you mention that Chinese manufacturers will almost never grant sole distributorships.. but does this apply if you are asking for a custom product? Like if you found them through a B2B portal for a product you are interested in but you are making changes to the design to make it better, etc. Will they then in turn be able to just sell that new design you made to anyone else?

Many thanks and apologies if this may be a noob, dumb question.. but that's where I stand at the moment :p

Appreciate it.
 

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Hey @Walter Hay
Thanks for all the support on this impressive and extremely valuable thread.

I've been reading your book as I'm looking to start in eCommerce and I had a question regarding 'exclusivity'. I know you mention that Chinese manufacturers will almost never grant sole distributorships.. but does this apply if you are asking for a custom product? Like if you found them through a B2B portal for a product you are interested in but you are making changes to the design to make it better, etc. Will they then in turn be able to just sell that new design you made to anyone else?

Many thanks and apologies if this may be a noob, dumb question.. but that's where I stand at the moment :p

Appreciate it.
There is never any guarantee that they will keep your idea just for you. Even if they say they will keep it exclusive to you, in reality they rarely will.

Here is a link to a post I made in reply to a member who had already encountered that problem. My manufacturer posted my product to order on their site

Walter
 
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There is never any guarantee that they will keep your idea just for you. Even if they say they will keep it exclusive to you, in reality they rarely will.

Here is a link to a post I made in reply to a member who had already encountered that problem. My manufacturer posted my product to order on their site

Walter

Thank you! I read the thread and will definitely apply what you and others mentioned. Gotta find the right supplier and build a good relationship with them from Day 1.

Many, many thanks


Sent from my iPhone using Tapatalk
 

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Hey Walter,

So I am in the final stages of negotiation and have requested a quote from the supplier but the cost for shipping seems to be extremely high.

The product costs 580 to manufacture but the supplier has quoted Door-to-Door shipping as 570 USD. The shipping method quoted was "express" so a 14 day turn around time but should it still be that expensive?
 

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