Going Door to Door
In the past we’ve provided our quotes CIF (cost, insurance and freight) to the major customs port nearest to our customer (i.e. CIF Los Angeles to a customer in Southern California).
Once the shipment is received at the port, there are additional costs involved with importing. To obtain a quote for these, you would find a customs broker in the U.S., get set up with them by filling out forms that included a power of attorney, have them research the duty rate for your product, and provide a quote for the port fees. (These charges vary from port to port, for example, there is forklift fee at the port of L.A. but not at others.)
In general, this is a list of the additional costs involved with importing:
- The duty tax that U.S. Customs charges, which is a percentage that varies according to product classification.
- The customs broker’s entry fee
- Document turnover fee
- The bond required by the U.S. government for all shipments.
- ISF single entry and bond fee
- AMS fee
- DDC (destination delivery charges) which apply to LCL (less than full container load) shipments.
- Delivery from the port to your door.
- Other miscellaneous small fees that might occur, depending on the port.
- Inspection charges should U.S. Customs decide to stop the shipment for one of their random exams.
In essence, we get the shipment from China to the customs port nearest to you, and your customs broker will clear the shipment through U.S. Customs and get the shipment from the port to your door.
We have now partnered with a customs broker who is connected with a nationwide network of brokers. This partnership gives us the ability to give you a door to door quote, inclusive of all fees. Their rates are competitive and their service is prompt.
Please let me know if you’d like a door to door quote. We need to know purchase quantities to calculate the volume, which is needed to estimate ddc charges.
China’s Slowing Down, and That’s Good for Us
Europe is reported to be China’s biggest trading partner.
With the present economic turmoil in the Eurozone, their imports from China have been declining. As a result, China’s manufacturing sector has been slowing; last month the China PMI (purchasing manager’s index) dipped to 49, and their new export order index declined to 45.6 (anything below 50 signals contraction).
This is good news for those who import from China because:
- China’s economy has been on fire the past two years, stoking wage inflation and contributing to labor shortages and price increases. The slowdown should help bring this back under control.
- Delivery times will improve. Without full order backlogs (and hopefully, eased labor shortage problems), production times should decrease.
- The occasional delays caused by power outages caused by too many factories using too much electricity should decrease. Last year one of our factories had constricted work times because the local municipality was limiting the availability of their access to electricity.
While China’s economy is still expected to grow substantially next year, this little bit of water on the fire should provide welcome stability.
The Chinese New Year Holiday
From about the third week of January through much of February, Chinese companies shut down for their nearly month long Chinese New Year holiday. At this point new production orders will ship out after factories return in February. Please keep this in mind when scheduling your orders.
The Exchange Rate
Yuan to the dollar, as of today: 6.34 to 1
Rate when the Yuan was depegged from the dollar on June 19, 2010: 6.82 to 1
Change: .48 (7%)
Since 1991, Global Trade Specialists, Inc. has helped companies of all sizes get their products made in China from manufacturers of quality products. We are an American company who works with three trading groups in China with immediate access to thousands of manufacturing companies. We source most products made from metal, plastic, wood, stone, glass or textiles; from prototype to production. Many of our customers are first time importers; we walk you through the entire process.
Read testimonials from some of our customers.
Email us for a free quote.