Imports from China after quarantine: where is the hidden rake

After the quarantine, which was introduced in almost all countries, many entrepreneurs put their work on hold. Currently, the business is gradually recovering and looking for new opportunities to earn money. One of the fastest ways is to import goods from China.

After the pandemic, China also remains a center of world trade. Many entrepreneurs already have experience in importing Chinese goods, but global force majeure has added new risks and nuances to those already known. Experts from a logistics company specializing in this area told what to consider.

What to beware of

During the quarantine, most Chinese factories stopped working. There is a queue of overdue orders among customers, and new ones are added on top. To cover the excess demand for products, some factories began to neglect the quality of goods. The production began to use low-quality raw materials, which were not declared under the contract. Therefore, the main thing you should pay attention to is quality. It is necessary to check the product for quality very carefully before sending.

In addition, in the current reality, the ordered products come later, or even much later) than the stated time, which negatively affects the business of the entrepreneur. Therefore, it is important to clearly define the delivery time in the contract. If the framework is not set, as a rule, such goods are sent last.

Suppliers often confuse the quantity, color and type of goods to be shipped. This is because the Chinese (especially now) do not pay much attention to customer requirements, especially in an unproven format - calls, correspondence, messengers. Therefore, nuances such as the exact color number of the Pantone system, in general - the most accurate technical and visual characteristics of the product, must be specified in the contract.

Another typical situation: for marketing purposes, suppliers together with the main product pack another: samples of new products, a bonus or an offer with a promotion. Which, of course, will not be registered in the customs declaration. This can lead to delays at customs. In the worst case, the party will simply be arrested.

It is worth noting that the manufacturer is not very concerned about the packaging of goods. If this point is not specified in the contract, the products are packed minimally. This could lead to the arrest of an entire party. If the cargo is transported on wooden pallets without special markings on chemical treatment, the customs will not allow it to the port / airport of destination. Make sure your cargo is securely packed according to international regulations.

To avoid all this, ideally you should have a representative in China who will personally inspect the party. However, choosing a logistics manager on your own (and even remotely), you can not accurately verify his reputation. And in this area quite often come across swindlers. The easiest way is to turn to logistics companies operating in Ukraine and engaged not only in supplies, but also in legal, customs and other services. Official intermediaries take the risks, guaranteeing the execution of works or deliveries.

A banal way of "Chinese" deception - fictitious representatives of well-known factories. The fictitious person is represented by the name of the real manufacturer to extort funds. You are allegedly contacting a factory representative who is communicating with you about the order. After discussing all the details, he sends you the bank account number to which you want to pay for the goods. After the transfer of funds, the "communicator" disappears. In fact, the bank account of the factory is completely different, and the person you negotiated with is an unknown fraudster. Therefore it is necessary to check accounts in reliable sources

How to avoid problems
If you want to supply from China yourself, you should follow a number of recommendations. Usually Chinese factories set a minimum batch size that they sell. So be prepared that this amount may exceed your needs. Surplus products will have to be stored somewhere or the channels of its sales will have to be thought out in advance. Once you have selected your supplier, invite a P / I (proforma invoice or receipt) for your potential purchases. It must include a harmonized system number, description and cost for each item. Your P / I must show the weight and packaged dimensions as well as the delivery time. This is an optional document to help you budget your future orders. The proforma does not oblige you to order delivery or pay for anything.
It is also necessary to make a preliminary calculation of the cost and time for logistics. The method of delivery will affect the cost and speed. For example, cargo shipped will now travel for 3 months or more. However, this is the cheapest way. The cost of transporting a minimum 20-foot container is $ 1-1.5 thousand. Air delivery is a more expensive way, and the goods will be delivered within 2 weeks. Here the cost of delivery will be from $ 340 per 100 kg of cargo. The space in the plane is limited and is suitable for delicate and perishable cargoes, as the goods are more securely fixed. In terms of "price-time" ratio, the best option is delivery by rail. The cost of such delivery starts from $ 150 per ton of goods, depending on the distance and type of product.
Today, you can easily find a supplier from China online. For example, the largest online platforms, such as Alibaba or ChinaBrands, offer the largest selection of manufacturers of any product. You can also contact them directly online. At the same time, a translator with a deep knowledge of the language is definitely needed for a more constructive dialogue and concluding a long-term contract.
It is important to check the reputation of the supplier. Information about the manufacturer can be found on the Internet in the public domain, as well as read customer reviews. For more detailed information, you can submit a request to the Association of Ukrainian-Chinese Cooperation, which checks contractors.
The control moment is the compilation of documentation. You need to have all the documents for international delivery: packing list, invoice, description of goods. The contract is the main document in resolving legal disputes, which in any case will help to obtain compensation.
And save without losses
In order to import goods from China, you do not need a large start-up capital. Of course, manufacturers have their own MOQ - the minimum order, but, as a rule, you can always agree to send the first batch of goods as a test. The volume of such a batch is usually smaller than a standard order. It is possible that in this case the supplier will raise the cost of production. The result will depend on the ability and skill to negotiate with the representatives of the Celestial Empire.
If we are talking about the goods one by one, then you will be helped by trading companies or 3pl-operators, who will gladly sell and deliver the required amount of cargo for a small markup. Therefore, if you plan to transport less than one container from China, it will be very difficult to do without the services of such companies. When grouped, your cargo is consolidated with others and delivered to the desired country.
You can also save on shipping. Multimodal trucking is a method of parcel delivery that involves the use of several types of transport, such as sea and road. The main feature and advantage of this type of cargo delivery is that it is controlled by only one logistics company. Multimodal freight allows you to choose the most optimal routes, in which transportation costs are reduced along with the deadlines. The best option for international multimodal transportation is to transport parcels in special containers, which are created just for this type of service. They also provide the fastest delivery time.
Another option for savings - associated transportation: this is the most profitable option for transporting small volumes of cargo. The accompanying cargo can be considered as the goods which are moved on a certain route when cars of the transport company follow empty. This occurs before or after the execution of the main transport order. Associated freight is beneficial to both parties. The carrier uses free space in transport, the rolling stock works effectively. The client pays for transportation services at a low rate.