Trade and Regulatory Considerations when Shipping from China to the US

In 2017, materials shipping from China to the US totaled over $500 billion dollars in value. This makes China our largest single trading partner. There are many advantages to importing goods from China, but there are also many hurdles and regulations to be considered. The first consideration is finding a trading partner. Whether you are importing materials for further manufacturing processing, or reselling them as is, you will need a viable, trusted supplier. Preferably, your chosen supplier should be experienced in shipping from China to the US, as there are many rules and regulations in China on which product groups can or cannot be exported from China. Examples may include food products, “knock off” designer fashions, or animal by-products. Make sure that you receive actual samples of the product from your supplier, so you can guarantee that the product meets your quality expectations. Chinese companies often actively seek out US based trading partners, so supplier identification should not be a major issue. If your time and budget allow, you can attend trade shows in China to identify potential partners. If you decide to travel to China, you will need a business visa. There are many US-based companies that can assist you in applying for this visa, or you can do it yourself through a Chinese Consulate in the US. Many Chinese suppliers also attend US trade shows, so meeting with them there could reduce your travel time and expenses. You or your supplier will have to arrange transportation , Depending on the type of goods, the order quantity and volume, how quickly they are needed, and several other factors, you will need to determine the mode of shipment. Normal modes will be by air, air cargo, or ocean freight. A Chinese based freight forwarder, familiar with shipping from China to the US, will be a valuable asset for you. Your supplier may be able to help you with recommendations for a freight forwarder. The freight forwarder will negotiate rate quotations and other costs related to shipping from China to the US. They have multiple carrier contacts with existing business relationships, and in most cases will negotiate lower rates than you would be able to obtain yourself. Inland transportation from your supplier’s location to the Chinese port can also be complex, and the freight forwarder should be able to help you with this aspect of your purchase. Depending on the size of your order, it may be either a full container load (FCL), or less than a full container load (LCL). Costs for an FCL shipment will be lower per unit, but you will need to order more units. A good freight forwarder can consolidate your LCL materials with other shippers’ LCL freight to get you a reduced rate. No matter the mode of transportation, your materials will have to be entered and cleared by US Customs prior to delivery at your location. A US Customs Broker can help you deal with all the legal requirements and red tape that can be experienced when shipping from China to the US. They can ensure that the goods are properly described, that the correct duty rate (if applicable) is applied, and that the goods are safely transported to your destination. Not completely following the rules can delay receipt of your order, and cost you significant money in storage and demurrage charges, additional inspection fees, and taxes and duties. Your customer broker should be able to help you do this right the first time. You can also look into such potential issues as special licenses on the US Customs website. Sourcing raw materials for your company’s manufacturing operations can give you additional sources to increase competition, and potentially lower your overall costs. This may also be the case if you are a reseller of the imported goods. While shipping has its share of complexities, a little research, finding the right partners, and executing your plans can give your business the competitive boost it needs to succeed.