AMA - Ask me anything on sourcing/importing from Asia..

[GuestUser113]

Shut up and take my money!

(Someone post the pic)


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[lovecharm]

Hey Every one,

Sorry for being away from the forum for last 5-6 months. There is good reason for it, because I was busy establishing our new menswear brand, getting the designs developed, getting them produced and shipped to US and finally getting the office/warehouse and staff in the office (Philadelphia).

So yeah, it was lot of work and effort that went in to setting the business up. Now everything is at the full swing and we are just getting more sales rep/agent, distributors, getting contracts from store group etc. If any of you in sales and have connections with fashion distributors and store groups then do get in touch, will be nice to discuss things and see what we can do.

I came to Asia now in our factories to design up coming products, so got some time in my hand, hence I will be replying in this thread and will check my emails regularly.

LC

 

[lovecharm]

I am in the social community business ... never tried my hand at the product importation side ... but I would like to dip my toes in the water ... diversify my background ... and start marketing some products as well.

So one of my concerns is NOT being in the commodity business ... where my product can (easily) be found 100 other places online at lower prices.

So what I would prefer to do is take existing products ... and re-brand them with new labels ... and position them as "something else" So if someone tried to find the same "product" online ... they couldn't. In other words ... take a generic bottle of ___________ ... and slap my "unique" label on it ... call it something different.

Are there places you can go online (that you know of) ... that are well suited for this ...?

Pick a product from an online catalog... upload a custom label ... pay for shipping ...?

Seems like you are trying to do something like dickbymail.com is doing.

I think you can find products for what you want to do every where, you just need to be careful about the original companies not suing you as you are selling their products etc.

You can also get unbranded goods and slap your label on it too. It all depends on which product you have decided to sell.

 

[lovecharm]

Hi Lovecharm,

I am currently living abroad from my home base in another country.

In your experience, does this situation present any unique opportunities for importation than normal?

I note that you seem to be living in a different area of the globe each time I check this thread, haha.

Cheers

The answer is yes. It certainly does. I know we are all involved in internet marketing, buying and selling on internet etc. But do not forget the power of face to face interaction. In my experience, internet and communication over internet can never replace the real life interaction.

I mean, I am in Bangladesh right now, developing our up coming products, in 12 days time I have to fly to Abu Dhabi to have a meeting. Yes we can always do the video conference, but trust me, its not the same when you are in front of them. Things are always different when you are in front of the person. You can solve lot of complex situations and can negotiate much tougher things when you are in front of people in real life.

Most of the director of major multi national companies that I know, always travel to meet with their client or partners etc. After meeting then they carry on communication over video conference or email, but they always re visit periodically. Thats how you keep the business relationship smooth and glitch free.

 

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[lovecharm]

Question.
Im living in Seoul and keen to send some phone cases overseas. The quantity per parcel wont be much to begin with.
Maybe 1 or 2 per parcel.
Im thinking of just going with regular air mail which will take about 1 week..
Any alternatives as it may risky. Need to keep the costs down.

EMS is fast and its quite cheap. Otherwise normal air mail is the cheapest, but takes a bit longer.

 

[michael40]

EMS is fast and its quite cheap. Otherwise normal air mail is the cheapest, but takes a bit longer.

So I am prepared to send some samples to potential buyers with them just paying the shipping fee.
The prob is the Shipping fee is like 25$ (to the US) for 4 samples weighing 500g in total with EMS.
The Unit Cost of each is about 5-10$

Does this seem fair?
How can we prove to a potential buyer it is legit??

 

[Walter Hay]

Ali baba would be my 1st choice^^^^

Not wanting to hijack another's thread, I have refrained form answering questions her, but now that lovecharm is back and has not answered esquire's question, I would just say Alibaba would be my last choice. If you want to know why, I suggest you have a look at my AMA thread.

So I am prepared to send some samples to potential buyers with them just paying the shipping fee.
The prob is the Shipping fee is like 25$ (to the US) for 4 samples weighing 500g in total with EMS.
The Unit Cost of each is about 5-10$

Does this seem fair?
How can we prove to a potential buyer it is legit??

Hi Michael,

I think you are being completely fair.

You can give them the following link to HK Post Office http://www.hongkongpost.hk/doc/publications/notices/2014/20141204a/rate.pdf#page=2 where they can look up Speedpost (= EMS) There they will find the rate for 500g to the US is HK$176, which at today's rate works out at about US$23. Unless they can read Chinese they will have to trust you that the China Post rate is virtually identical.

Regards,
Walter

 

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[lovecharm]

Not wanting to hijack another's thread, I have refrained form answering questions her, but now that lovecharm is back and has not answered esquire's question,

I actually did.

So I am prepared to send some samples to potential buyers with them just paying the shipping fee.
The prob is the Shipping fee is like 25$ (to the US) for 4 samples weighing 500g in total with EMS.
The Unit Cost of each is about 5-10$

Does this seem fair?
How can we prove to a potential buyer it is legit??

Show them the online chart of the parcel cost, plus when you get the receipt then you can show it to them as well, simple.

 

[Walter Hay]

I actually did.

Sorry, my slip.

 

[wbrett1027]

Here's a questions, did you ever have to pay a "duty tax" from China to United States??


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[Phones]

@Walter Hay have a quick question,

I always used the suppliers shipping agent so they always billed the shipping cost together with the goods invoice.

They are quoting us an insane 18$/Kg (after the initial quote was 4.5$), and they are also asking for the shipping cost to be transferred to a personal bank account. We will probably go with our own freight forwarder.

My question is, what is the correct way to show the documents for custom authorities? An invoice of the goods from the supplier, and another invoice from the freight forwarder with the shipping cost?

Thanks !

 

[DST]

So I'm looking for suppliers for some good quality plain(and tagless) tees, the quotations are $2.5 - 4 a piece, but I got one with $1.60 from a two year gold supplier, however if I want a sample its $75 ($25 production cost, $50 shipping) - or I can place my order (pay the full price in advance), receive sample for free for me to review, and they start the production if I'm satisfied.


Is this normal or should I stay away?

 

[Walter Hay]

@Walter Hay have a quick question,

I always used the suppliers shipping agent so they always billed the shipping cost together with the goods invoice.

They are quoting us an insane 18$/Kg (after the initial quote was 4.5$), and they are also asking for the shipping cost to be transferred to a personal bank account. We will probably go with our own freight forwarder.

My question is, what is the correct way to show the documents for custom authorities? An invoice of the goods from the supplier, and another invoice from the freight forwarder with the shipping cost?

Thanks !

You need to be very wary. This sounds like a common scam when they want the shipping cost transferred to a personal bank account.

The next step is usually to tell you that there is a Customs problem in China and you will have to pay $XXX to get the goods through Customs there. I've seen it happen many times.

Get the supplier to revise their quote to EXW if you are using air courier, or to FOB Port (such as Shenzhen) if you are using sea freight, you then get your forwarder in Portugal to quote you for freight including all costs to your door. That must include Customs clearance work. The supplier must then provide an invoice to the carrier appointed by you forwarder, otherwise they will not pick up the goods.

By using your own freight forwarder you will not have to worry about presenting documents to Customs. The forwarder does that for you. The forwarder will then pay any duty and taxes on your behalf. You then pay those costs to the forwarder, usually before they will deliver to you.

If it is a small consignment you do not need to use a forwarder. An air courier such as UPS will do exactly the same for you provided you have got an all-inclusive quote from them in writing.

 

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[Phones]

You need to be very wary. This sounds like a common scam when they want the shipping cost transferred to a personal bank account.

By using your own freight forwarder you will not have to worry about presenting documents to Customs. The forwarder does that for you. The forwarder will then pay any duty and taxes on your behalf. You then pay those costs to the forwarder, usually before they will deliver to you.

If it is a small consignment you do not need to use a forwarder. An air courier such as UPS will do exactly the same for you provided you have got an all-inclusive quote from them in writing.

Thanks for the reply Walter

The quote was already EXW. I had an inspection done and all checked out so I don't think they are scamming, they either tried to grab some extra money on the shipping or have an expensive freight forwarder.

They have agreed to let the shipment go after the 70% remaining are paid (to the company bank account ofc).

I contacted a Chinese forwarder to have the goods sent by TNT, they quoted 5.65$/kg which is in the regular range, plus some extra to pick-up at the supplier warehouse and customs documents. I checked TNT pricing table here in Portugal and they charge a 2% flatfee for the customs work for big shipments. Will be around 160€ + VAT .

DHL price per Kg was cheaper, but I had problems before with DHL Portugal to clear my shipments. When custom officers request more documents, they intermediate all the communication, and it's a mess, takes forever...

I might check a portuguese forwarder, but companies in Portugal only like "Big fish", they will probably charge me around that value (160€) but overcharge on the shipping cost. Maybe get it shipped by an express company and having a local company do the customs work would be the best option.

For reference, the shipment is worth 8000 USD (with-out shipping), and volumetric weight is around 130Kg (supplier claims actual weight is 240Kg, from inspection report that is way off, and from the average item weight * nº of items, each item would average around 40g, and they go between 20 to 30g. This is also why I want a local freight forwarder, they will measure it themselves, and I will double check it in Portugal)

The items don't have any specific custom requirements, they need CE certificate because it is considered a security item, but it is level one, so actual tests don't need to me made. The supplier has a legit CE certification.

 

[Walter Hay]

Thanks for the reply Walter

The quote was already EXW. I had an inspection done and all checked out so I don't think they are scamming, they either tried to grab some extra money on the shipping or have an expensive freight forwarder.

They have agreed to let the shipment go after the 70% remaining are paid (to the company bank account ofc).

I contacted a Chinese forwarder to have the goods sent by TNT, they quoted 5.65$/kg which is in the regular range, plus some extra to pick-up at the supplier warehouse and customs documents. I checked TNT pricing table here in Portugal and they charge a 2% flatfee for the customs work for big shipments. Will be around 160€ + VAT .

DHL price per Kg was cheaper, but I had problems before with DHL Portugal to clear my shipments. When custom officers request more documents, they intermediate all the communication, and it's a mess, takes forever...

I might check a portuguese forwarder, but companies in Portugal only like "Big fish", they will probably charge me around that value (160€) but overcharge on the shipping cost. Maybe get it shipped by an express company and having a local company do the customs work would be the best option.
For reference, the shipment is worth 8000 USD (with-out shipping), and volumetric weight is around 130Kg (supplier claims actual weight is 240Kg, from inspection report that is way off, and from the average item weight * nº of items, each item would average around 40g, and they go between 20 to 30g. This is also why I want a local freight forwarder, they will measure it themselves, and I will double check it in Portugal)

The items don't have any specific custom requirements, they need CE certificate because it is considered a security item, but it is level one, so actual tests don't need to me made. The supplier has a legit CE certification.

There are a few things I would like to suggest:

• Because Customs Brokers in EU countries do not have to be licensed, I would only work through one who is a member of Câmara dos Despachantes Oficiais. http://www.cdo.pt/ The Portugese association is affiliated with The International Federation of Customs Brokers Association, so its members should be trustworthy.

• There is a relatively new and small freight forwarder in Portugal, Ranatrans SA, that is likely to be keen for business. It might be worth contacting Joao Oliveira at joaooliveira@ranatrans.pt Most problems are likely to happen in the receiving country rather than China, and that is why I would always prefer to work with a forwarder in Portugal than in China.

By the way €160 is an exorbitant charge for Customs Clearance. It can be done electronically and unless it is a very complex shipment it could be done in a couple of minutes by a junior typist.

I should also mention that I hope you have double checked the CE Certificate. You might like to see an answer I gave on my AMA regarding DIY checking of certificates: Sharing my lifetime experience in export/import. Product sourcing specialist. Forging of certificates is widespread.

 

[Phones]

There are a few things I would like to suggest:

• Because Customs Brokers in EU countries do not have to be licensed, I would only work through one who is a member of Câmara dos Despachantes Oficiais. http://www.cdo.pt/ The Portugese association is affiliated with The International Federation of Customs Brokers Association, so its members should be trustworthy.

• There is a relatively new and small freight forwarder in Portugal, Ranatrans SA, that is likely to be keen for business. It might be worth contacting Joao Oliveira at joaooliveira@ranatrans.pt Most problems are likely to happen in the receiving country rather than China, and that is why I would always prefer to work with a forwarder in Portugal than in China.

By the way €160 is an exorbitant charge for Customs Clearance. It can be done electronically and unless it is a very complex shipment it could be done in a couple of minutes by a junior typist.

I should also mention that I hope you have double checked the CE Certificate. You might like to see an answer I gave on my AMA regarding DIY checking of certificates: Sharing my lifetime experience in export/import. Product sourcing specialist. Forging of certificates is widespread.

Thank you again Walter,

Yes I double checked the CE certificate (went to the certificator website and checked all the info).

I've contacted João Oliveira by e-mail right now, I will call him later if the reply takes long.

The weight is after all 240Kg, so air freight becomes much cheaper depending on local charges. I specified in the e-mail to João that a Chinese freight forwarder already has the goods and I am looking for their custom clearance service and for their recommendation in terms of air freight/air express.

Edit: Looks like João Oliveira doesn't work there anymore. I called the company and they ask me to send to their general e-mail. Waiting on their reply.

 

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[Samu]

DeZj. N nnnnonnonooonoonno w t, es r esed

 

[Walter Hay]

Thank you again Walter,

Yes I double checked the CE certificate (went to the certificator website and checked all the info).

I've contacted João Oliveira by e-mail right now, I will call him later if the reply takes long.

The weight is after all 240Kg, so air freight becomes much cheaper depending on local charges. I specified in the e-mail to João that a Chinese freight forwarder already has the goods and I am looking for their custom clearance service and for their recommendation in terms of air freight/air express.

Edit: Looks like João Oliveira doesn't work there anymore. I called the company and they ask me to send to their general e-mail. Waiting on their reply.

The Chinese freight forwarder is unlikely to part with the goods until you pay for their freight, so I hope you can get a good deal from Ranatrans on clearance and delivery to your door. Otherwise try finding a customs broker on the CDO link I provided above.

It is important to know the difference between air freight and air courier services. Air freight usually only provides for delivery to the airport in your country, and there will be various extra charges just as there are in the case of sea freight. Air courier services usually are completely door to door with all those charges included. In some EU countries the couriers hit you for extras as you have already discovered. That is why quotes in writing are so important.

 

[Phones]

The Chinese freight forwarder is unlikely to part with the goods until you pay for their freight, so I hope you can get a good deal from Ranatrans on clearance and delivery to your door. Otherwise try finding a customs broker on the CDO link I provided above.

It is important to know the difference between air freight and air courier services. Air freight usually only provides for delivery to the airport in your country, and there will be various extra charges just as there are in the case of sea freight. Air courier services usually are completely door to door with all those charges included. In some EU countries the couriers hit you for extras as you have already discovered. That is why quotes in writing are so important.

Got a call from Ranatrans after some e-mail exchange. They were super helpful and answered all my questions. Also, they were the only ones who sent a PDF Quotation for the prices of the services and all airport fees. All airport fees + their service is around 300€. I got other quotes nearing 500€. (I said PT companies like to overcharge ...)

The extra cost is Ok, airfreight saves me more than 700€ just on shipping cost compared to air express.

Just one last question, Ranatrans said that, to speed up things, I could have it sent to them directly (MAWB - Shipper: Chinese Forwared - Consignee: Ranatrans , and HWAB - Shipper: Supplier - Consignee: Me ) . Have you seen this kind of arrangement?

Thank you

 

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[Walter Hay]

Got a call from Ranatrans after some e-mail exchange. They were super helpful and answered all my questions. Also, they were the only ones who sent a PDF Quotation for the prices of the services and all airport fees. All airport fees + their service is around 300€. I got other quotes nearing 500€. (I said PT companies like to overcharge ...)

The extra cost is Ok, airfreight saves me more than 700€ just on shipping cost compared to air express.

Just one last question, Ranatrans said that, to speed up things, I could have it sent to them directly (MAWB - Shipper: Chinese Forwared - Consignee: Ranatrans , and HWAB - Shipper: Supplier - Consignee: Me ) . Have you seen this kind of arrangement?

Thank you

Things are looking good.

MAWB is a Master AirwayBill and is issued by the main carrier of goods on receipt of the goods from a freight forwarder to deliver at destination.
HWAB means House AirwayBill issued by a freight forwarder on receipt of goods from the shipper agreeing to deliver goods at destination.

Their suggestion to have the shipment consigned to them (Consignee: Ranatrans) seems a good one and is very common. It is particularly useful in jurisdictions such as Portugal and others where the bureaucracy is still wallowing in red tape.

Hope you get the goods trouble-free soon.
Walter

 

[lovecharm]

Here's a questions, did you ever have to pay a "duty tax" from China to United States??


Sent from my iPad using Tapatalk

All of our goods comes from Bangladesh and other countries, and we do have to pay customs tax. So I guess it will be same for China too.

 

[lovecharm]

So I'm looking for suppliers for some good quality plain(and tagless) tees, the quotations are $2.5 - 4 a piece, but I got one with $1.60 from a two year gold supplier, however if I want a sample its $75 ($25 production cost, $50 shipping) - or I can place my order (pay the full price in advance), receive sample for free for me to review, and they start the production if I'm satisfied.


Is this normal or should I stay away?

Now, when you mentioned plain tees, does it means its blank tees without any of your print? If it's just a blank tee then they are being silly as they don't have to produce anything, they should have these tee's already made.

However, if they have to print your design and do customisation then yes they will charge you production cost and that is normal.

 

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[mikeb]

Lot of interesting information in your responses. Can you point me in the right direction for product liability insurance? What do your customers in the United States do about product liability insurance?

 

[Ronak]

Lot of interesting information in your responses. Can you point me in the right direction for product liability insurance? What do your customers in the United States do about product liability insurance?

I must've reached out to around 50 contacts to find someone that would cover my product. Out of those, the most common response was...nothing. As in, being ignored. Others were unable to quote for some reason or another (they didn't like China, they didn't like my niche, etc), 1 company wanted a 5 figure sum for basic stuff. The person that finally came through with the lowest quote was referred to me by my CPA.

Get a personal recommendation from your CPA, lawyer, banker, etc,. they are more likely to go the extra mile for you versus just a cold call.
Good luck

 

[RenEnergy]

Great thread, Lovecharm. Any ideas about hi-tech products ?

 

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[Npl9]

What are some good freight forwarding services in the US? I feel like I'm being quoted very exorbitant rates, in the thousands, for a 1 CBM, 220kg shipment.

 

[Jurffy]

Hi,

If I just import an item in from China to store by myself, and mail them out when consumers purchase - what is the level of passivity? I've purchased a product from Aliexpress before. It is a high-quality imitation of an original product, I am looking into reselling this.

Thank you for your time!

 

[Walter Hay]

Hi,

If I just import an item in from China to store by myself, and mail them out when consumers purchase - what is the level of passivity? I've purchased a product from Aliexpress before. It is a high-quality imitation of an original product, I am looking into reselling this.

Thank you for your time!

Don't even consider reselling counterfeits. Risks include: Confiscation by Customs, prosecution leading to fines or jail, being sued into bankruptcy by the legitimate brand owner, or at the very least having your name and address flagged so that every subsequent shipment will be delayed for thorough inspection.

Don't even consider buying branded big brand items from China either even if they tell you they are legit and not copies.

There are better, safer, and legal ways to make money importing.

 

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[Jurffy]

Don't even consider reselling counterfeits. Risks include: Confiscation by Customs, prosecution leading to fines or jail, being sued into bankruptcy by the legitimate brand owner, or at the very least having your name and address flagged so that every subsequent shipment will be delayed for thorough inspection.

Don't even consider buying branded big brand items from China either even if they tell you they are legit and not copies.

There are better, safer, and legal ways to make money importing.

Phew! I was wondering why nobody was selling it, thank you for helping out a newbie, Walter.

 

[DamienP]

Hello, thank you for setting up this thread.

Wat is your experience of buying EXW, rather than FOB? Is there anything I need to watch out for?