Importing from China is an experience that brings your company enormous benefits. As we know, we are talking about the number one exporting country in the world, chosen by well-known brands due to the numerous commercial advantages it offers.
Whether your company is a regular importer or is planning its first purchase in the Asian giant, you must take into account certain key points that could mark the success of your import or its failure if you operate blindly and without planning.
What are the most common mistakes made when importing?
Not knowing how the Chinese do business
There are certain factors that you must take into account when doing business in China, because the Eastern culture is very different from the Western one.
For the Chinese, security is important, and they are not open to doing business where there is none. Another important fact is that respect and punctuality are key to gaining their trust, which is more complicated considering that their time is scarce.
Gaining their trust by initiating conversation is a real challenge! Therefore, it is essential that you are accompanied by experts in negotiations with the Chinese. Especially if you do not speak their language, which makes understanding even more difficult and, if there is no good communication, it is difficult to close a deal with the agreement of all clauses.
This issue is so important that part of the success of any import depends on how the pacts are closed. Because you will not only have to negotiate prices, quantities and qualities with the suppliers, but you must also agree on the terms of purchase: incoterms, delivery terms, payment methods.
Negotiating with unreliable suppliers
When dealing with suppliers you must also take your precautions, so be sure to research and verify the manufacturers you have located. In this sense, it is necessary to corroborate their contact information, documentation, registrations and licenses to know if they are legally constituted and reliable.
Before signing a contract with a new supplier, make sure you have thoroughly researched it. This means getting to know their facilities, their production process, their materials, their quality standards, even talking to other importers who have sourced that type of product or directly from that supplier.
The best thing to do is to visit the factory in person and if you cannot do it, you can count on our central offices in China with which you can outsource this fundamental part of the process. And if you yourself are not an expert in the product you are importing, consider including in the visit our specialists who already understand the production process.
In this sense, this point is key because you must keep in mind that you are responsible for the products you import, that is to say, you will be the one who must respond in case of any mishap when your goods are in the customs clearance process.
If it is held up in customs or if you discover that it has arrived with defects and you cannot market it, it will be a huge financial loss for your company that you will not be able to recover.
Do not manage sample reception
This import step is indispensable because of the functions it performs. First, it is necessary to verify if the manufacturer is able to manufacture your goods, with the specifications and requirements you consider: materials, components and standards.
If you overlook this management you may run the risk of facing misunderstandings or possible conflicts in negotiating with suppliers.
Also, requesting samples will allow you to rule out fraudulent suppliers. In general, when they avoid a sample shipment it is because they may be hiding something behind it.
Not knowing the current regulations of your merchandise
If you are already a regular importer you should know that it is essential to be aware of the regulations required for your products and to make sure that the Chinese suppliers you deal with meet international standards.
You must be aware of the regulations that affect your products as well as those of the country you are importing, so that you can demand the specific certificates required.
So do your research and be aware of any updates, this way you will avoid customs holds, delays and unanticipated extra costs that will disrupt your budget and your supply chain.
Choosing the wrong incoterm
Choosing between one incoterm or another can make an important difference in the profitability and safety of your import.
The decision for the appropriate Incoterm will depend on several factors, your experience as an importer and your relationship with your suppliers will determine which one is right for you. Each one has its advantages and disadvantages, you must analyze them consciously to advance in safe steps.
Planning international freight on short notice
Booking and contracting transportation without advance notice is a mistake that inevitably results in delays and interruptions in your logistics chain. It should be noted that, depending on the port in China from which the cargo departs and the port of destination, transit times vary considerably.
Likewise, you will have to consider not only the time it takes for air or sea transportation, but also for land transportation.
The same will happen if you carry out customs clearance without planning. If, for example, you organize it three months before the date you need to receive the goods, you will have a margin of time to resolve any possible setbacks that may arise.
The best thing you can do is to count on the support of comex experts. Mingta Group will manage your international purchases with excellence. Contact us and we will take care of your next import!
