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And whether direct buy china is free samples, or paid samples. There are 3,, direct buy china suppliers, mainly located in Asia. For a small business, this may seem like a large expense, involving travel fares, hotels, meals and other expenses. However, the potential savings might make this option a cost-effective and worthwhile means of establishing contacts with reliable manufacturers based in a country where personal interactions are a valued and important part of the culture.
Request samples of products you've selected to purchase. You may need to pay a nominal fee, but this can prove an inexpensive way to examine the quality of the merchandise before placing a larger order. Alternatively, purchase a small number or amount of the product. This can also give you an opportunity to examine the product and allow you to assess and learn about the process as the small order makes its way through purchase, customs, shipping and delivery.
Choose a shipping method. It may be worth the cost to ship a small package -- say a box of medical supplies that you need quickly -- by air. Ocean shipping can be far less expensive, depending on the size of the order, but may take up to 30 days, including time from the Chinese factory to the shipping docks, shipping transit, clearing customs and shipping time to your business or warehouse.
You may need to hire a third-party logistics provider with customs-broker experience, depending on the complexity of the order. Estimate the cost of the value added tax. This is a tax -- 17 percent for most goods -- that the Chinese government has placed on all exported goods since Chinese companies don't list this tax when quoting prices -- just as U. But, you, as the buyer, are expected to pay it.
Many Chinese firms are entitled to receive rebates from the Chinese government, sometimes for the entire value of the tax. So ask about any such rebates the firm might receive and negotiate for a discount if the manufacturer is receiving one. Also, consult the United States International Trade Commission Harmonized Tariff Schedule of the United States to determine if any customs duties will be assessed on the products you're buying.
Again, as the buyer, you are responsible for such duties, which vary widely according to the products -- some goods aren't even charged such duties. Even if you aren't using a sourcing agent to help inspect the order and handle customs issues, these taxes and duties could add up to 40 percent to your order.
Additionally, ensure that the right customs code is affixed to the products you are ordering by consulting the HS Code database. The lack of the correct code could delay your shipment or even cause it to be confiscated. Pay for the order. The accepted practice is to use a method: You pay 30 percent on placing the order and 70 percent when it is shipped. Sometimes, you can negotiation terms, in which you put 30 percent down, pay 40 percent when the order ships and the remaining 30 percent when you -- or your warehouse employees -- receive the goods.
If it's a large order, use a third-party inspection company before you make an initial payment. Based in Northern California, Leon Teeboom has worked in the newspaper business and now teaches students with disabilities.
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