China Trade & Importing - Frequently Asked Questions
What kind of products do you work with?
We work with most products made from metal, plastic, wood, stone,
ceramic and glass, in addition to clothing and apparel. See
products we source for a listing.
Is China
the only country you source from?
China, with it's vast industrial
base and low labor costs 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 the products you source 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 worked with companies 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.
Do you
have a minimum order amount?
The minimum order value we may accept is $10,000.00. This varies from factory to factory
according to setup costs and production run requirements.
Can you
provide our products with custom packaging?
Yes, we do this often. We've sourced
product packed in individual blister packs (plastic clamshell
with full color cardboard insert), cartons with full color artwork
and in custom boxes, and in custom display boxes. We can provide plastic, metal or hardwood cases
made from woods like walnut, rosewood or maple to provide value added sales appeal.
We can also provide custom displays or sales racks made from
cardboard, wood or metal.
Once
I place my order how long will it take before I receive the shipment?
On average, for the first production run of a new product, the manufacturer
will needs 30 -
45 days
to make any molds or fixtures and provide a sample for approval.
After sample approval, it can take another 30-45 days to make the production run,
depending on the complexity of the product and order quantity.
Sea and inland freight
transit time can range from 4-6 weeks. For example, it takes about
2-1/2 weeks 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 items the factory is already making,
it will take less time as the 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 closest to 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 or source any product that would infringe on a current
patent or trademark.
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 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.
This issue is addressed in more detail in the
July 2010 edition of our
newsletter.
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.
Is the importing process difficult?
No, it's easy once you know the ropes. See
Importing from China for more
information.
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, around $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. Our Product
Development page shows the process from start to finish; we can
help you from concept to production.
Do we
contact Global Trade Specialists every time we place an order?
Yes, all orders are placed through us.
Anything else I should know?
Yes, we publish a monthly
newsletter that is sent out by email.
The Global Trade newsletter will keep you up to date on any current
events that might affect your overseas purchases.
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