As a foreign buyer starting to import from China, what should I do?

As a foreign buyer starting to import from China, here’s a structured action plan combining key steps from expert sources:

🔍 ​​1. Supplier Sourcing & Verification​​

  • ​​Use B2B Platforms​​: Start with Alibaba, Made-in-China, or Global Sources. Filter for “Gold Suppliers” with verified export records and factory audits. Avoid traders posing as manufacturers by checking business licenses.
  • ​​Verify Legitimacy​​:
    • Cross-check export volume via customs data tools.
    • Use Chinese databases like Tianyancha (天眼查) to uncover legal disputes or penalties.
  • ​​Sample Testing​​: Order samples from 3-5 shortlisted suppliers for quality/compliance testing (e.g., material safety, durability). Note delivery speed and packaging quality.

📝 ​​2. Legal & Documentation Setup​​

  • ​​Business Registration​​: Ensure your entity has valid import credentials (e.g., CNPJ for Brazil, EIN for the US).
  • ​​Key Documents​​: Prepare:
    • ​​Proforma Invoice​​: Itemized costs for customs valuation.
    • ​​Packing List​​: Detailed cargo contents/weights.
    • ​​Certifications​​: Request suppliers provide CE, FDA, or RoHS compliance documents for regulated goods.
  • ​​Trade Terms​​: Negotiate Incoterms (e.g., FOB for buyer-controlled shipping, CIF for supplier-managed logistics) .

💰 ​​3. Cost & Payment Management​​

  • ​​Pricing Negotiation​​:
    • Request cost breakdowns (materials, labor, overhead) to avoid hidden fees.
    • Leverage China’s 13% VAT refund by asking for shared tax savings (e.g., 3-5% discount).
  • ​​Secure Payments​​:
    • Use ​​Alibaba Trade Assurance​​ or ​​L/C (Letter of Credit)​​ to protect against non-delivery. Avoid 100% upfront payments.
    • Start with small orders (30% below MOQ) to test reliability.

🚢 ​​4. Logistics & Customs Compliance​​

  • ​​Shipping Options​​:
    • ​​Sea Freight​​: Cost-effective for bulk goods (20-40 days transit). Choose FCL (Full Container) for large volumes or LCL (Less than Container) for smaller loads.
    • ​​Air Freight​​: Faster (3-7 days) but 3-5× more expensive. Ideal for urgent/high-value goods.
  • ​​Avoid Customs Delays​​:
    • Ensure accurate HS codes on invoices.
    • Pre-pay duties if using DDP terms. Hire a customs broker for complex categories (e.g., electronics, cosmetics).

⚠️ ​​5. Risk Mitigation Strategies​​

  • ​​Quality Control​​:
    • Hire third-party inspectors (e.g., SGS) for pre-shipment checks. Specify AQL (Acceptable Quality Level) standards in contracts.
    • Include penalties for delays/defects (e.g., 2% daily fee for late delivery).
  • ​​Backup Suppliers​​: Identify 2-3 alternative suppliers for critical items to prevent disruptions.
  • ​​IP Protection​​: Sign NDAs and register designs/trademarks in China before sharing specifications.

📦 ​​First Shipment Checklist​​

  1. Confirm supplier’s production timeline.
  2. Finalize packaging/labeling requirements (e.g., bilingual labels, destination-compliant warnings).
  3. Arrange cargo insurance covering damage/theft.
  4. Track shipment via Bill of Lading (BOL) number.
  5. Inspect goods upon arrival before releasing final payment.

💡 ​​Pro Tips for Beginners​​

  • ​​Start Simple​​: Focus on mature supply-chain products (e.g., home goods, accessories) before niche/custom items.
  • ​​Leverage Agents​​: Use sourcing agents in China for factory visits, negotiations, and QC if unable to travel.
  • ​​Tool Utilization​​: Monitor trends/competitors via Siomex or ImportYeti for data-driven decisions.
  • ​​Network​​: Join trade fairs (e.g., Canton Fair) to meet verified suppliers and logistics partners.