Importing From China – Everything you need to know

Is procuring goods your daily job? Are you considering becoming an importer of a specific product? Looking for alternative suppliers or ways to transport your cargo? Navigating the logistics of importing from China can feel overwhelming, but when broken down, it’s a strategic process that unlocks immense business potential. China remains the indispensable factory of the world, offering unparalleled manufacturing scale and competitive pricing. 

This comprehensive guide takes you step-by-step, starting from supplier identification all the way to warehousing your final products. Our goal is to make importing products from China a breeze, streamlining your supply chain, minimizing risk, and maximizing your profit margins. 

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Ready to learn the logistical secrets of how to import from China successfully? Let’s begin. 

Finding the Right Supplier: Your Foundation for Success 

Just like finding the right partner in your personal life, identifying a reliable supplier has the same long-term effects. Taking the time to choose the proper manufacturer can save you significant money, time, and hassle down the road. This phase is crucial for any business looking to import from China. Remember that when working with suppliers in China you need to be aware of how Chinese New Year affects their business, read our guide on How to be prepared for the Chinese New Year? 

Where to Source Your Suppliers 

Today, there are many options for finding manufacturers, but a simple Google search often isn’t enough—especially since many smaller or highly specialized Asian factories aren’t indexed on Western search engines. 

• Alibaba & 1688: The classic starting point. Alibaba is the international, English-language portal. 1688 is the domestic Chinese equivalent, often offering lower prices but requiring greater Mandarin proficiency or the use of a sourcing agent. 

• ImportYeti: This is a powerful, often free, tool that provides access to official US import data (ocean cargo manifests). You can search for real companies across Asia that have already shipped analogue products to US-based clients. This gives you a verified history, allowing you to see where competitors are sourcing their products and identify reliable, high-volume manufacturers. 

• Trade Fairs: The most direct and assuring (though costly) option is visiting a major trade fair. The Canton Fair in Guangzhou is one of the biggest trade events globally, offering everything from electronics to furniture and allowing you to meet manufacturers face-to-face. 

• Sourcing Agencies: If you find the supplier search too big of a hassle, European and global sourcing agencies can help. They expedite the process by finding and verifying suppliers on your behalf. While they function as intermediaries and thus may result in higher initial pricing, they provide assurance of quality, verification, and often better negotiation leverage. 

Due Diligence and Negotiation: Securing Your Order 

Once you have identified 3–4 potential suppliers for similar products, the real work of due diligence and negotiation begins. This comparative process helps you understand differences in factory processes, product quality, terms, and, critically, communication. 

Key Negotiation Points 

Schedule thorough negotiations to finalize the following aspects when ordering from China: 

Negotiation Point	Key Consideration	Risk Mitigation
Price	Base unit cost. Look for bigger discounts as your order quantity (MOQ) increases.	Lock in tiered pricing schedules for future scaling.
Certificates	Must confirm compliance for your target market (e.g., CE, RoHS, FDA, FCC).	Ask for proof of European reference orders to confirm market readiness.
Production Capability	The supplier’s capacity to meet your long-term demand and turnaround time.	Confirm maximum monthly output and production lead times.
Minimum Order Quantity (MOQ)	The lowest number of units they will produce.	Negotiate a lower MOQ for first/sample orders to manage risk.
Incoterms	This defines who pays for and manages the shipment at various points (e.g., FOB, EXW). (Read our full guide to Incoterms 2020 Explained).	Insist on FOB for larger shipments, which gives you control over the logistics from the Chinese port.
Payment Terms	Standard is often 30% deposit before production and 70% upon completion/inspection.	Never pay 100% upfront. Use secure methods like Trade Assurance.

Compliance and Quality Assurance 

After initial price and product agreements, you must confirm market compliance. 

• European Market Requirements: Ask for necessary certificates for the European market. If a supplier has no European reference orders, their manufacturing might be focused only on local or non-European markets, increasing the risk of missing licenses. 

• Customs Pre-approval: To find out if your specific product has compliance demands, consult your local government agencies (e.g., Tulli in Finland, Tullverket in Sweden). Share pictures and detailed information to confirm the product is safe to import goods from China before placing a major order. 

• Sampling: Once confirmed, order samples. This initial order often requires pre-payment (sometimes via PayPal for convenience) and is essential for verifying product quality and specifications before committing to the full order. 

Logistics Strategy: Combining and Consolidating Shipments 

This is where true cost efficiency for importing products from China is found. After samples are approved, you need to decide how to move the bulk cargo. 

Transportation Options for Importing Containers from China 

You have three main modes of freight: Air, Ocean, and Rail. The best choice depends on a crucial balance of time, cost, and cargo characteristics.  

Transport Mode	Rate (Est.)	Delivery Time	Ideal Cargo Type	Key Advantage	Key Disadvantage
Air Freight	4-7 EUR/kg	4-21 days	High-value, small, heavy (moulds, electronics, valuables), or urgent goods.	Fastest delivery. Low risk of in-transit damage.	Highest cost. Expensive for volumetric or big-dimensioned goods.
Ocean Freight	0.5-1 EUR/kg	70-120 days	Low-unit-price, volumetric, big-dimensioned, or heavy goods (metal, furniture).	Lowest shipping cost, essential for importing containers from China.	Longest transit time. Risk of General Average (cargo owners share loss).
Rail Freight	0.5-1.5 EUR/kg	30-45 days	Average unit price, volumetric goods (plastic, machinery), where 1-2 months’ transit is acceptable.	Cost-effective and relatively fast middle ground.	Capacity is smaller than sea/air. Passing Russia is restricted for certain goods.

The Rule of Thumb 

• Under 100 kg and 1 CBM: Air Cargo is usually the most reasonable choice. The time advantage lets you resell products quicker, keeps production flow high, and ties up less cash in transit. 
• Volumetric or Heavy Cargo, Non-Urgent: Ocean or Rail is necessary to keep the purchasing cost competitive. 

Consolidation: Reducing Cost Per Unit 

All seasoned veterans in importing from China who are ordering from multiple sources know that consolidation is a must-use strategy. 

Consolidation involves combining shipments from different suppliers into a single, larger shipment (ideally a shared or full container). This efficiency significantly reduces your shipping cost per unit, often by more than 40% for customers shipping pallets. 

• How it Works: Instead of paying minimum LCL (Less than Container Load) fees for three small shipments, you combine them at a Chinese warehouse and ship them as one FCL (Full Container Load) or shared-space shipment. The shipping container types and dimensions also matter. 

• Strategic Planning: Use tools like MyDello to compare the cost of shipping from multiple suppliers separately versus shipping all consolidated goods from one location. The achieved cost-efficiency per unit can be remarkable. 

The Import Process: Options and Execution 

Once the shipment is ready, you must decide how the transportation and customs clearance will be managed. 

Arranging Transportation: Supplier vs. Forwarder 

You have two primary ways to arrange the final transportation: 

• Let the Supplier Handle Everything (DDP/CIF): The Chinese supplier organizes and pays for the freight. This is less work for you, but you lose control over carrier selection, potentially pay a markup, and may face unforeseen customs issues, costs or delays upon arrival. 

• Use a Local Partner (FOB/EXW): You use a dedicated freight forwarder, like MyDello. This gives you full control over the shipping route, carrier, and timing. It makes sense to compare the supplier’s rates with those of a local partner. Since Chinese import rates fluctuate heavily and almost daily, comparison is key to minimizing costs.  

Incoterms: Who is Responsible for What? 

The Incoterm you agree to with your supplier (Step 2) is a critical legal term that defines the exact point at which the responsibility and risk of the goods shift from the seller to the buyer. 

• EXW (Ex Works): The simplest for the seller. You, the importer, assume all costs and risks from the moment the goods leave the factory door in China. You are responsible for everything, including local Chinese transport and export customs. 

• FOB (Free On Board): The most common term for larger volume and sea freight. The seller pays for local transport and export customs to the agreed-upon Chinese port. Responsibility shifts to you once the goods are loaded onto the ship. This is generally recommended as it gives you control over the expensive and complex ocean/air freight booking process. 

• CIF (Cost, Insurance, and Freight): The seller pays for the freight and cargo insurance up to the destination port, but the risk shifts to the buyer once the goods are loaded onto the ship. 

Import Customs Clearance: Mastering the Paperwork 

Once your import goods from China reach the destination country, they must undergo customs clearance. This is due to the fact that all 3rd-country imports (outside the EU/local trade zone) require formal clearance. Read our Comprehensive Guide to Importing Goods into the EU 

Calculating Duties and VAT 

Customs clearance is a procedure where multiple factors are combined to determine the final duties and taxes: (Ensure you have your EORI number before clearance). 

• HS Code: The Harmonized System (HS) code is a globally standardized number used to classify goods. Your product’s HS code determines its duty rate. 

• Country of Origin: Confirms the goods were manufactured in China. 

• Cargo Value: The declared commercial value, which is the basis for calculating duties and taxes. 

• Duty Rates: Import duties are product-specific and can vary from 0% to over 100%. Use tools like SimplyDuty or contact your local customs association with your product’s HS code for an accurate calculation. 

• VAT: In Europe and many other regions, VAT (Value Added Tax) will be added on top of the product cost plus the calculated import duties. 

Your Customs Clearance Options 

There are three main ways to manage the import customs clearance: 

Option	Pros	Cons	Best for
Freight Forwarder	Smoothest process; they already have the required documents and can manage issues quickly. Bulk pricing may offer a discount.	Slight intermediary cost is included in the service fee.	Most common, recommended for consistent importers and those new to importing from China.
Customs Broker	Highly specialized knowledge for complex products or niche industries. Best cost and time efficiency for specific, high-volume declarations.	Requires separate communication and management outside your main logistics partner.	Very specific, high-compliance products or businesses with extremely high, regular declaration volumes.
DIY Clearance	Cheapest option; every cent is saved on service fees.	Most time-consuming. Navigating the customs system can be complex and frustrating for first-timers. Declarations can take hours.	Edge cases only: when every cent is crucial, or you have previous customs experience.

Final Mile Delivery and Warehousing Strategy 

After customs clearance and payment of duties, the cargo is legally released for final mile delivery. 

Final Delivery and Quality Control 

• Inland Transit: Your freight forwarder or logistics partner should organize the transport from the arrival port or airport to your final destination warehouse. 

• Inspection: Always inspect your delivery immediately upon arrival. Check for damage, missing items, or incorrect specifications. Promptly report any issues to both your supplier and freight forwarder to facilitate a potential insurance claim. 

Warehousing: Own Space vs. 3PL 

With first shipments, temporary storage may suffice. However, as orders grow consistent, you’ll face a critical decision about long-term storage and fulfillment. 

• Own Warehouse: Provides maximum control and often lower operative costs if your volume is consistently high. However, it requires a significant initial investment (fixed costs) in space, equipment, and staff. 

• 3PL (Third-Party Logistics) Partner: This option offers no fixed costs but higher variable operative costs. 

• Benefits: It provides flexibility, scalability (handling peak seasons without leasing more space), and transparent, reportable processes. Using a 3PL often speeds up essential API integrations with your logistics partners, stock management systems, and e-commerce website. If you are selling on Amazon, check out our guide to Mastering Amazon FBA Shipments 

• Recommendation: For temporary or flexible warehousing, look for smaller storage partners who have excess space. This often gives you a better, more flexible cost base than large, rigid 3PLs initially. 

Conclusion: Streamline Your Import Strategy 

Successfully importing from China is a systematic process encompassing product sourcing, diligent negotiation, strategic logistics planning, and compliance management. These steps are unavoidable, but when optimized, they create significant savings in time, cost, and cash flow. 

By following this expanded guide, you can ensure that your process—from ordering from China to final storage—is efficient, compliant, and poised for growth. 

Ready to streamline your next shipment? Let’s discuss how to import from China smoothly and cost-effectively with our instant-quote portal. 

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Most Valuable Websites to Bookmark: 

Purpose	Recommended Website
Organizing Transport	www.mydello.com
Finding Suppliers (Ocean Data)	www.importyeti.com
Duty Calculation	www.simplyduty.com
Local Import Requirements (Example)	Your Local Customs Authority Website (e.g., ttja.ee, tullverket.se)