China Trade - Frequently Asked Questions

What kind of products do you work with?

We work with most products made from metal, plastic, wood, stone, ceramic, glass, leather or nylon. We do not source textiles/clothing products, jewelry, or chemicals.

Is China the only country you source from?

China, with it's vast industrial base and low cost labor is the primary country we source from. However, we can also source from India, Pakistan and other Asian countries.

Do you have a catalog of your products and manufacturers available?

We do not maintain a catalog in printed form of the products we have worked with, or provide a list of the many thousands of manufacturers in China. In addition, we have sourced products for some of our customers that are proprietary and/or patented and they do not want their sources made public knowledge.

Do you work with companies outside the U.S.?

Yes, we have customers in the U.S., Canada, the U.K. and Australia.

How long have you been in business?  

Since 1991. See About Us for more on our company.

How long does it take to get a quote?

On average about 1-2 weeks after our people in China receive all information on your product. It can take up to 4 weeks depending on how long it takes to locate the right factory.

Do you have a minimum order amount?

The minimum order value we may accept is $10,000.00. The minimum order value varies from factory to factory and can be more, depending on setup costs and production run values.

Can you provide complete products with our custom packaging?

Yes, we often provide product with custom packaging. We've sourced product packed  in individual blister packs (plastic clamshell with full color cardboard insert), in boxes with full color artwork and in custom boxes. We can provide plastic, metal or hardwood cases made from woods like walnut, rosewood or maple that the individual products can be packed in to provide value added sales appeal.

Once I place my order how long will it take before I receive the shipment?

For the 1st run of a new product manufacturers need 30 - 90 days to produce any molds or fixtures necessary for the production process. (The average is 2 months when molds are involved.) After the molds/tooling are made it can take another 30-90 days to make the production run, depending on the complexity of the product and order quantity. (The average is 45 days.)
Once your order is ready to ship you'll have sea and inland freight transit time. For example it takes 11-16 days for a ship to go from a seaport in China to the port of Los Angeles. Customs clearance and unloading can take another 3-4 days and then the shipment will be trucked to your door. If you were in Denver it would take approximately 30 days to go from China to your door.

For repeat orders or for product the factory is already making it will take less time as the production tooling is already made; the factory can start making your parts as soon as their production schedule allows.

How does the shipping process work?

All shipments go direct from China to a port of entry in a major city near you. You will then have a customs broker of your choosing clear the shipment and get it shipped to your door. We quote your order with the freight paid to the nearest port to you. For example if your office is based in Denver we would provide you with a quote that will include the part price and all sea and inland freight paid to the port of Denver. You would then arrange having the shipment delivered from the port in Denver to your door.

Can we copy an existing product, and what about patent issues?

Yes, we can send an existing product that is not patented to China to be duplicated but the responsibility of insuring there are no patent or trademark infringement issues lies 100% with you - we do not perform patent or trademark searches. We will not knowingly quote any product that would be an infringement of a current patent or trademark if it was made.

What protection do we have against someone copying our product?

Our customers often request that we sign a license/exclusive contract or non-disclosure agreement (these are provided by the customer or the customer's attorney) whereby we agree not to sell or disclose the customer's product line to others. We have no problem in doing this. Upon request we also add exclusive clauses or license agreements in with our negotiations with the factory in China.
In the U.S., Canada and all other developed countries realize that patents and trademarks are your only true legal protection. Without a patent or trademark any company - American or foreign - can legally copy and sell your product.

Do you sign non-disclosure agreements with your customers?

Yes, upon request we sign non-disclosure agreements. We do not provide them - these are provided by the customer or the customer's attorney.

What are the total costs involved in importing?

In addition to the cost of the product, you will have the following:

1. Customs duty. This is your country's tax on imported product. In the U.S. customer duties range between 1% and 30+%, depending on the product class. The average is probably around 5%. Your customs broker can tell you the duty rate for your product.

2. Customs broker fees. On average, about $100.00 - $150.00 per shipment.

3. Inland freight from the port of entry to your door.

4. Document Destination charges (also known as DDC). This is the port of entry's handling charge and it varies from port to port. In general DDC fees run about $30.00 per ton.

5. Labor/forklift fee to unload your shipment from the container. On average, about $40.00 per shipment.

6. Bond fee. This is required by US Customs to back up payment for the duty tax. Bond fees are set by the dollar value of the shipment. The minimum bond fee is usually around $50.00 and from there the cost increases by some $4.00 per thousand dollars of invoice value.

7. Our commission (10%), which is invoiced separately.

Do I need a customs broker, and where can I find one?

Yes, you will need a customs broker to clear your shipment with U.S. customs. Your customs broker will get your shipment transported from the sea port to your door by the inland freight carrier of your choice.

Customs brokers are easily found in the yellow pages and on the internet. The US Customs website has a list of customs brokers available in every state. They also have the addresses of the entry ports in the U.S., general information on importing, and much more.

I'm an inventor and/or I have an idea for a new product.
How do I get started?

We receive many inquiries from persons or inventors who have an idea for a product. Please note that our main purpose is in manufacturing products overseas - we do not do any kind of original engineering or prototyping, nor do we develop business plans. Prior to contacting us you will need to have done the following:

1. All necessary engineering and prototyping of the product to prove that it works or performs as is intended.

2. You must have either prints or drawings of the product, or a sample or prototype. We need this to provide the factory so that they can quote the item. We cannot be responsible for returning any prints or samples.

3. You will need to have developed a sales and marketing plan and have a general idea of the quantities you can sell each year. This means talking to a number of customers in your prospective market and discussing the product, estimated retail (and wholesale) prices, and whether they would actually purchase the product should you bring it to market. Many people assume that market research means that because they like the product that it will sell. True market research is talking to as many of your customers as possible and finding out if they will buy the product from you, and at what price. We also have to know your purchase quantities prior to talking to a factory about your product.

4. You must have the financing in place to not only purchase the inventory but sustain your business.

How does Global Trade Specialists make money on this?

We charge a 10% commission on the value of every shipment that is shipped from China to your door. There is no charge for us to locate a factory for your product and provide you with a quote, other than the FedEx cost to send your sample to China.

Do we contact Global Trade Specialists every time we place an order?

Yes, all orders are placed through us.