Guide to Importing from China to the USA 01

Many people consider importing products from China, but often have many questions and are unsure how to start. Here, we will address some of the most common concerns, providing you with a clearer understanding of the entire importing process and helping you better prepare.

1. Do you need a license to import from China to the USA?
2. Where to find suppliers for importing from China to the USA?
3. Finding Chinese suppliers through a sourcing company
4. Choosing between buying existing products or customizing products
5. Quality inspection for your product
6. Shipping your cargo to the USA
7. Do you need a freight forwarder to help you?
8. What shipping incoterms should you use?
9. What should you do for customs clearance?
10. How much import tax should you pay?

Do you need a license to import from China to the USA?

The Customs and Border Protection (CBP) does not require importers to have a license or permit to import merchandise into the USA. However, it is necessary to prepare certificates for some special product categories, such as the Children’s Product Certificate (CPC) for products intended for children under 12 years old, the Federal Communications Commission (FCC) certificate for electronic products, and the Food and Drug Administration (FDA) certificate for food and cosmetics.

For specific requirements, it is recommended to consult with your supplier or freight forwarder.

Where to find suppliers for importing from China to the USA?

Find Chinese suppliers by yourself

In this e-commerce era, more and more importers are finding suppliers online. The most popular Chinese wholesale websites are listed below.

Alibaba

Alibaba is the largest and most comprehensive wholesale platform in the world, with many Chinese factories and trading companies opening stores here.

To buy from Alibaba, you can either directly send suppliers inquiries or use Alibaba RFQ and wait for suitable suppliers to contact you.

However, it is important to remember that not all “Verified Suppliers” on Alibaba are reliable, as this title can be obtained by paying a membership fee.

Made-in-China & Global sources

Made-in-China and Global Sources are two perfect alternatives to Alibaba, with each platform focusing on different product categories. Made-in-China has more professional suppliers focusing on apparel, craft, vehicle, and machinery industries, while Global Sources is for the electronics and gifts industry.

The minimum order quantity (MOQ) and product prices on these two sites are similar to those on Alibaba, as many Chinese suppliers open stores on all three platforms.

DHgate and Aliexpress

The biggest advantage of these two sites is that they require a smaller MOQ. AliExpress is more suitable for those who offer dropshipping services, as buying 1 or 2 products is acceptable on AliExpress. DHgate is more suitable for startups and B2C e-commerce sellers who can wholesale a small amount of the products to test their market.

Finding Chinese suppliers through a sourcing company

Importers are increasingly turning to sourcing companies to wholesale products from China to the USA. Most of these companies are located in Chinese industry clusters and have access to a lot of supplier resources. As a result, they can find suppliers more efficiently than an individual could.

In addition, sourcing companies provide various sourcing services, from supplier selection and sample making, to mass production, quality inspection, and cargo transportation. They can control the entire process and make it smoother for the importer.

Thus, a sourcing agent is a good choice, especially for those without related experience or those who want a professional team to manage their supply chain. With a sourcing agent, there is no need to worry about anything related to importing from China.

Choosing between buying existing products or customizing products

If you want to buy existing products, simply choose a supplier and ask them to send you a sample for inspection. If the sample is satisfactory, place an order and the supplier will deliver the goods to you.

However, if you want to customize products, that is, make adjustments to existing products, it can be a challenge. The process is complex and takes a lot of time and effort. If you directly contact the factory for customization, you may encounter problems such as the factory not understanding your ideas, the order being too small to meet the factory’s minimum order quantity, or the factory not taking your small but troublesome order seriously.

In this case, a sourcing agent is the wisest choice.

Quality inspection for your product

Quality control is essential when importing from China to the USA. Unlike shopping in your local store, if you find a defective product after it has been shipped to you, it is very troublesome to return it back. The supplier may not agree to your return request, and even if they do, you have to pay additional high fees such as shipping fees and duties. This process can take a long time.

To avoid these problems, it is best to check the defect rate of the product before shipping it to you. Contact the supplier in time for re-production or compensation. This way, the goods you receive will not have too many problems. You can find a third-party quality inspection company or a sourcing agent to inspect the goods.

Shipping your cargo to the USA

Different shipping methods have different shipping times, freight costs, and applicable conditions.

If you want to ship a package less than 500kg, you can choose express delivery such as UPS, FedEx, and DHL. The delivery time is 4-7 days.

If your cargo is more than 500kg and you want to receive the cargo quickly, you can choose air freight. The shipping time is similar to express delivery, but the cost is cheaper.

When your cargo is more than 2 CBM with low value, and you are not in a hurry to receive the goods, you can choose sea freight. It is the cheapest shipping way from China to the USA. The shipping time is 25-40 days.

Do you need a freight forwarder to help you?

Yes, freight forwarders are important and indispensable. They can help you ship goods from China to the USA. As middlemen, they are responsible for collecting cargo, loading and unloading, transportation, customs clearance, etc. Therefore, no one books directly with the shipping company. They are all looking for a freight forwarder, unless your cargo volume is particularly large, such as dozens or even hundreds of containers a month.

What shipping incoterms should you use?

The way your supplier quotes is related to shipping incoterms. When you inquire about a quotation, ask which incoterm is being used.

When importing from China to the USA, FOB and CIF are the most commonly used. The formula below can help you figure out what is included in their quotes:

FOB quotation = product price + freight from the factory to the China Port + customs declaration fee in China

CIF quotation = product price + shipping cost from China Port to USA Port + customs declaration fee in China + Insurance

Under FOB terms, you need your own freight forwarder to send the goods from China to the United States, so it is more suitable for those with import experience.

If you are a novice and cannot find a reliable freight forwarder, you’d better choose CIF terms. Your seller often has a cooperative freight forwarder who can help you deliver the goods to the USA. You only need to collect the goods at the US port and clear through customs.

What should you do for customs clearance?

You need to apply for customs clearance, hand in AMS filing and ISF, submit the required documents such as a packing list and bill of lading, pay customs duties and taxes, and then wait for customs to release your cargo.

Another thing is to buy a customs bond. It is an assurance to customs that you will comply with all customs regulations and pay all customs fees and fines on time. When you import goods valued at $2,500 or more, it is mandatory.

Customs clearance is a complex process. If you hire a forwarder, they can deal with all these things for you. Alternatively, you can find a local customs broker who can also offer you these services.

How much import tax should you pay?

Import Duty

Any goods valued at $800 or more are subject to import duties when they enter the USA. The duty is usually charged as a percentage of the customs value.

FOB quotation = product price + freight from the factory to the China Port + customs declaration fee in China

You can find the customs value on the commercial invoice. The duty rate is determined by the HS code and product category. You need to correctly classify your product to get the right HS code and duty rate. If you cannot, please turn to your freight forwarder or your sourcing agent.

Merchandise Processing Fees (MPF)

MPF applies to all air and sea shipments and is calculated as 0.3464% of the value of goods. The minimum value is $27.75, and the maximum value is $538.40.

Harbor Maintenance Fees (HMF)

HMF only applies to sea freight shipments and is set at 0.125% of the value of the goods. It has no minimum or maximum value.

To calculate the total import tax you should pay to the US customs, add Import Duty + MPF + HMF.

Why can Onestopimport make your importing process smoother?

We integrate factory resources all over China, such as Guangzhou, Shenzhen, Zhejiang, etc. With abundant resources, we can quickly filter the best factory for any product at competitive prices, which is our greatest advantage. Even if your order is small, we can still find factories to produce your goods, making us especially suitable for small and medium business importers.

Most of our clients are from the USA and EU, so we are quite experienced in the whole importing process. We can solve any related problems, from supplier selection and sample making, to customization, mass production, quality inspection, cargo transportation, and customs clearance. We have 1-by-1 sourcing agents to guide you step by step through the importing process.

Start your import business with Onestopimport now.