We receive daily inquiries from companies that want to import as well as from companies that are already importing but are looking to optimize their operations and that is why we have decided to prepare between Mingta Group and ILS (International Logistic Services 3005) a guide to provide you with all the information you need for your purchases from China.
Depending on the item to be imported, each related entity has a procedure, forms and specific requirements to issue the import license. However, in the following guide we will discuss the most important information:
WHAT ARE THE REQUIREMENTS TO IMPORT INTO VENEZUELA?
- Legal Entity: If the importer is a Legal Firm it must have the commercial registry (Acta Constitutiva), Identity Card of the legal representatives and the RIF (Registro de Información Fiscal).
- Natural Person: If the importer is a Natural Person, he/she must have his/her Identity Card and Personal RIF.
In order for imports to be nationalized, the importer must be registered in the Sidunea System (Automated Customs System).
Registration in the Sidunea must be done at least 2 weeks before the cargo arrives at the Venezuelan port or airport, for this only a copy of the RIF is needed.
All importers must have a Customs Broker for the nationalization of their merchandise, they cannot do direct procedures.
WHAT TO CONSIDER FOR A SUCCESSFUL IMPORT?
6 tips every importer should follow:
“Remember that the success of a good sale lies in a good purchase.”
- When requesting a quote be sure to provide all product information:
Depending on the product to be imported, it is very important to have all relevant information ready, such as characteristics, specifications, material, composition and photos so that the supplier understands the type of product your company is looking for. It must be taken into account that often, due to cultural differences, for Chinese suppliers what we understand as equal, for them is the same as similar. The problem occurs because they usually quote a reference value and then when you are about to confirm the purchase, adjustments are made for type of material and other information that was not provided from the beginning, so it is very important to clarify each point. - Search and choice of suppliers: It is very common to search for suppliers through online platforms that recommend suppliers through the Internet. However, it is important to understand that contacting the supplier and asking for quotations is only the beginning of importing. Many suppliers quote and then when samples are requested they are not able to send us the sample or even worse the sample does not match what was quoted and for that we have already invested and lost time. In addition, Internet scams involving Chinese suppliers are very common because they know that it is difficult that in the case of non-compliance with part of the agreement any member of your company is going to take a plane to make a claim in person.After years in international trade, experience tells us that having a company that is responsible for the search and development of supplier portfolio with offices in China and with staff who speak the same language and handle the same culture for effective communication, and in turn has Chinese staff to achieve better prices and conditions is the best strategy for your company in the long term. Learn more about Sourcing.
“We have found that the cost of this strategy more often than not pays for itself in savings on product prices, international freight quotes and savings in management and staff time in your company.”
- Factory audit:
To demonstrate to the supplier that you are a serious buyer and that you have support, it is important that you have a purchasing office in China, which in addition to carrying out supplier development, is also responsible for visiting the factory and preparing a report on the working conditions of the factory and checking if it is able to manufacture your product. In this way, the supplier will consider you as a customer to whom you will have to provide a good service. In the following link you will find more information about factory auditing. - Price negotiation:
Remember not to ask for entry prices because the supplier will classify you as a price-focused buyer. First you should tell him exactly what product you are looking for, check if the supplier knows the product and if he is able to offer you samples, what would be the production time, payment methods and finally ask for price. Keep in mind that the larger the order, the greater the probability of success in the negotiation. Also, if you can get a Chinese staff to negotiate prices for you, the chances of getting some kind of discount will increase. Here you will find more about Negotiating prices with suppliers. - Quality control:
Depending on the type of product, we recommend that you perform a quality control before shipping the goods in a container to your country. Experienced importers know that the key to an import is to control that everything goes perfectly, both to make claims to the supplier before the goods are shipped in order to remedy errors and to save time and costs once they arrive at their destination. - International transportation contracting:
Contact forwarders requesting quotations, ask for at least 3 to have as references. We have preferential rates for our clients in conjunction with ILS.
Finally, to make it more practical, we leave you an import case:
Example of import cost from China to Venezuela:
- Import of a container of bicycles: 300 units
- FOB unit price in China: usd 40
- Ocean freight: usd 3500
- Tariff: 20%.
- VAT: 16%.
- Approximate costs at destination: FCL costs usd 1300 approx (port-warehouse-vacuum return).
- Approximate fees of a customs broker: FCL cargo. 1% on CIF value + usd 350 (this when the value is higher than usd 100.000, it is negotiable lower than 100 thousand. FCL) usd 900/equipment.
- Sea transit time: 50 to 55 days approx.
- Route: China-Panama-Vzla.
- China- Kingston-Vzla.
Operation of an import by sea:
- Once the Vessel arrives, the warehouse receiving the FCL or LCL cargo delivers to the customs broker the Act of Receipt (This is given the day after the vessel finishes its operations).
- With the Receipt Act + Original BL + Original Commercial Invoice, the customs broker makes the declaration in the Sidunea system, here the system automatically generates the forms for the payment of taxes.
- Once the payment has been made and registered in Sidunea, the import channel is automatically displayed:
- Red Channel: Physical Verification + Documentary.
- Yellow Channel: Documentary Verification.
- Green Channel: No Physical or Documentary Verification, but is subject to any future inspection.
- Once this process is satisfactorily completed, the necessary payments are made to the Port, Warehouse receiving the Empty Equipment and the Merchandise is dispatched.
- Electronic Declaration, once the Tax Returns are received, the importer has a period of 4 working days for the cancellation.
- From the delivery of the receipt to the dispatch is estimated between 4 to 5 working days.
Normally it is suggested to importers to have availability in Bolivars for the different payments.
The rates for third party expenses are reflected in Dollars, however, they are paid in Bolivars at the DICOM rate (Sistema de Divisas de Tipo de Cambio del Banco Central de Venezuela) and this varies daily.
Important Information:
There are many products that are exempt and exonerated (exempt from permitting and exonerated from paying taxes). Some products do not pay taxes as long as they present their permits and/or Certificates required by Seniat (Servicio Nacional Integrado de Administración Aduanera y Tributaria).
It is worth mentioning that the resolutions and rulings in Venezuela are dynamic, so we recommend that in order to carry out the import process of the item of your interest, you should verify with the entities involved, the regulations in force at that time.
If your company is looking to increase its profitability and reduce its costs, Mingta group is the solution for your imports! Contact us and be part of the success!
