Because of the incredible processing supply chain and commercial infrastructure in China coupled with low labour cost, there is an astonishing rise in the country's imports all over the world. Because of that, many marketers find importing an ideal business endeavour. However, unexpected expenses related to imported items may not only lower your profit-making opportunity but may also result to total losses. It is important to double check everything and make sure to know preferential trade agreement well, have an accurate calculation of the transportation cost, and check the clarity of the importing documents because these are important ways to trim total cost as you do product importing China.
Consider All Factors of Total Landed Cost
In dealing with China produced items, know the total cost of the goods first. This is one way of knowing what price the products can be sold for. Knowing the total landed costs of the items on the other hand i very tricky. In order to accurately calculate it, you have to consider all factors beyond the obvious primary price. Don't just look at product cost savings. Instead, try to look at the whole picture. It is also important to calculate associated duties, taxes, financial impacts which came from other regulatory controls. Also, factor in the total transportation costs, and try to adjust for increased lead times, inventory variability, and customer service.
Make Use of Low interest Trade Agreements
In trimming the import cost, you should also be knowledgeable of the low interest rate trade agreements. To the countries who sign low interest trade agreements, this is a pact between countries that reduces tariffs for a certain product. The tariffs may not be necessarily eliminated but they are lower than countries not party to the agreement. To get double-digit reduction on your import duties, it is important to make use of leverage trade agreements in this kind of business. To acquire savings on your duties, you should check wisely the changes in low interest rate trade agreements and start knowing things that are necessary to qualify China imported goods. To lessen the risks of penalties and fines, you must take advantage of it.
Accurately Calculate the Transportation Costs
As one of the most common landed cost issues, higher-than-expected transportation cost is being experienced. To also lessen the cost of import, check the calculation of the total cost shipments based on the contacted rates including rules and regulations governing tariffs. Optimize your carrier selection decision and you can help yourself as it reduces import costs.
See to it that Your Import Documents are Accurate and Complete
Inaccurate and incomplete documents of import are one of the main reasons why shipments are delayed. Aside from the fact that due to this event an importer is subject to pay fines or audit due to the irresponsible classification and failure to value imported products, the importer will also experience the delay which will last for many days or even weeks. As an importer, you must always put these reminders top of your check list.
