Imports from China to USA offer a plethora of opportunities for businesses seeking cost-effective products. However, it is a busy and complex endeavor, and you should handle it effectively from multiple angles. To import goods to USA successfully, follow this comprehensive guide, covering everything from sourcing products to passing through customs clearance.
Table of Contents
- Search right products to import
- Product restrictions for importing to USA
- Find good Chinese wholesale suppliers
- Arrange smooth cargo shipment
- Tips you should know about shipping to USA
- Handle customs clearance
- Common Incoterms of China imports to USA
- Your budget for imports from China to USA
- Common payment methods to Chinese suppliers
- Three basic rules for a seamless import to the USA
- Find a reliable freight forwarder to free your hands
- FAQs on importing to USA
Search right products to import
Choosing the right products to import from China to the USA is crucial for a successful import trade, but also can significantly reduce cost. If you aren’t sure what to sell, continue reading about the best products to import from China.
From a profit point of view, below are some characteristics of the products you should consider:
- Have a favorable profit margin (>20%)
- Stable and in high demand
- With a reliable supply chain
- Easy to ship and have manageable weight and dimensions
- Meet high-quality standards and comply with safety regulations in the USA
- Have a unique selling proposition or offer something different from competitors
- Can offer branding opportunities or be customized to carry your own brand
Product restrictions for importing to USA
Aside from those basic attributes, consider certain product restrictions in the USA. Failure to obey these regulations may result in fines, delays, confiscation of merchandise, and even legal sanctions.
Some examples of imported products regulations you can check:
Prohibited Items: These may include illegal drugs, counterfeit goods, certain types of weapons, and hazardous materials.
FDA Regulations: The U.S. Food and Drug Administration regulates food, drugs, medical devices, and cosmetics imports requiring compliance and may need prior approval or clearance.
IPR Protection: The USA has strict laws protecting intellectual property rights. Importing counterfeit or pirated goods can result in legal consequences.
ATF Regulations: Bureau of Alcohol, Tobacco, Firearms, and Explosives Regulations heavily monitor products like firearms, ammunition, and explosives, necessitating specific licenses and permits when imported to USA.
Find good Chinese wholesale suppliers
After you have selected appreciated products, you should find a supplier or manufacturer to produce them. On the other hand, you can also find private label products in China, which means you can take an existing product and add your branding on top of it.
Here are some effective ways to find reliable suppliers in China:
1. Search on famous online marketplaces or sourcing agents such as Alibaba, Global Sources, and Made-in-China.
2. Attend trade shows and exhibitions in China, where you can meet suppliers in person and view product samples. For detailed China exhibition information, you can search on Google.
3. Join trade associations or forums to connect with like-minded professionals and gain insights into reputable suppliers in your target industry.
4. Consider working with sourcing agents or third-party service providers who can help you identify suitable suppliers and negotiate pricing.
Arrange smooth cargo shipment
Transportation is vital in modern international trade. There are many costs associated with cargo shipping, such as packing fees, container fees, terminals and handling, and more. You need to get a complete picture of logistics costs and make an informed decision.
Typically, you can import from China to USA in three common ways: air freight, sea shipping, and courier delivery. If you want to start China imports to USA in bulk, you can consider FCL or LCL shipments. A 20-by-40-foot FCL container can take approximately 2,400 cubic feet of cargo.
Conversely, you might use cargo consolidation services if your shipments are small. It can pool your goods together with other shippers, reducing individual shipping costs. Most professional logistics companies support one-stop freight consolidation options, such as Airsupply. They ensure that consolidated freight shipping from China to USA is efficient and smooth.
Tips you should know about shipping to USA
1. China to USA shipping time might take 5-40 days, depending on the circumstances and transporting methods you have used.
2. Delays may occur during China to USA import process, such as procrastination of cargo produced or shipping, customs having seized your goods, etc.
3. Don’t expect your goods will be shipped as soon as the factory produces them. Because it takes at least 1-2 days for your goods to arrive at the port from the factory.
As you can see, there are many things you should be aware of when importing from China to USA. In order to receive the goods fast and cheaper, you can select an experienced freight forwarder (Like Airsupply) with a proven track record. They can guarantee smooth processes, controllable costs, and continuous cash flow.
Handle customs clearance
Clearing customs when importing from China to the USA is a crucial step. Below is a breakdown of the comprehensive guide to how to clear customs and the requirements for various cargo values:
1. Prepare the required documents
- Commercial invoice
- Packing list
- Bill of lading/airway bill
- CBP Form 7501 Entry Summary
Other requested permits or certificates for specific cargo, such as:
- USDA certificates (for agricultural products)
- CPSC certification (consumer products especially for children)
- EPA certificates (for pesticides and chemical substances)
- DOT Hazmat certification (for dangerous goods or materials)
Ensure you have accurately provided all needed documentation for China imports to USA. Otherwise, the customs may detain your shipment which will cause cargo shipping delays from days to weeks.
2. File import entry declaration
Submit the required import entry paperwork to the US Customs and Border Protection (CBP) through the Automated Commercial Environment (ACE) system. It can be done by yourself or through a licensed customs broker.
Entry requirement to USA
Informal entry:
If your cargo’s value is below $2500, you can process it through the informal entry clearance. It allows you to finish import declaration on the spot and will cost fewer fees to clear the custom.
Formal entry:
If the shipment value is > $2500, you should file it as a formal entry. Generally, the customs fees for this entry clearance are about $200-300, and brokerage fees are about $100-200.
The shipping agent always clears customs on your behalf – although it may need an extra cost. Alternatively, you can handle import entry at the port yourself or ask customs brokers to do it for you.
3. Pay customs duties and other customs clearance fees
Calculate and pay customs duties, fees, and import taxes China to USA based on your imported cargo.
Imported goods valued at $800 or more are subject to duties and other taxes. Before calculating import duties, you need to check the goods’ Harmonized Tariff System (HTS) classification. Once you obtain the code, you can find the tariff rate related to the cargo.
Except for cargo duty and tax, you also should pay import bonds for a formal entry. It is a contract between you, a surety company, and CBP, guaranteeing that you will obey all customs regulations and pay any applicable import fees. The estimated custom bond will be at least 10% of the total duties and taxes paid.
For more information about custom bonds, check this article: What is A Customs Bond? What Types and Where to Buy?
4. Customs examination and release
Once CBP has reviewed and approved your import entry, your shipment will pass clearance and be allowed import into the United States. Normally, CBP will clear your shipment within 24 hours.
However, sometimes, CBP will randomly flag certain shipments and do an in-depth inspection. You may be fined if failed to match the declared information and comply with import regulations. What’s worse, it will incur shipping delays because you should revise and correct the cargo information, etc.
Common Incoterms of China imports to USA
One of the ways to reduce the cost when importing from China to USA is to select the suitable Incoterm to meet your needs. Understand the shipping terms so that you can establish clear cognition regarding responsibility, shipping costs, insurance, risk transfer, etc.
There are 11 basic Incoterms you can check. For example, the best option for a buyer is the DDP shipping term. The seller (carrier) will take responsibility for paying all costs covering logistics and insurance. Furthermore, the seller will clear customs and pay duties both in China and USA.
As for sellers, EXW terms are the most friendly solution. Under EXW shipping, the buyer is responsible for all expenses and risks associated with the cargo movement. To learn more about the Incoterms, check the article: What are Shipping Terms: Meaning And Glossary.
You should notice that the Incoterm is negotiable. You can consult your freight carrier and choose the best term to tailor your shipments.
Your budget for imports from China to USA
When pricing your product, you should include all costs of China imports to USA. In addition to shipping costs, customs duties, taxes, and total product costs, here are some additional costs to consider:
Inspection and extra port entry fees
Depending on the type of CBP inspection, inspection costs can range from $100 to $1,000 or more. Moreover, there may also have additional port of entry charges, such as Harbor Maintenance Fees (HMF). The HMF rate is 0.125% of the imported cargo’s entered value. You should know that HMF is separate from other customs fees and duties.
Merchandise processing fees (MPF)
It is a fee imposed by U.S. Customs and CBP on most goods imported into the United States. It is a flat fee assessed on the value of the imported merchandise, designed to cover the costs of processing customs.
For informal entry (cargo valued at $2,500 or less), the MPF is a flat rate of $2.00 per shipment. Meanwhile, for a formal entry clearance (cargo valued over $2,500), you should pay 0.3464% of the value of the good. According to CBP, the minimum merchandise processing fee is $27.23 per entry, and the maximum is $528.33.
Surcharge services cost
Sometimes, purchasing freight insurance can protect your cargo from loss or damage during transit if you deliver high-value goods. Besides, you may hire a customs broker to handle the customs clearance process. All these charges you should include in the total cost.
Partnering with an expert freight forwarder, you can get a more accurate total cost for importing from China to the USA. They can help you understand and calculate the needed charges that occur during the importing process.
Common payment methods to Chinese suppliers
When importing goods from China to USA, payment for your Chinese supplier is another important part. Generally speaking, you need to pay 30% of the total cost upfront for production, and the remaining 70% is paid before or upon shipment. The following are some most common payment methods:
Bank Wire Transfer: A direct international transfer of funds from your bank account to the supplier’s bank account. It is also called Telephonic Transfer (TT) payment.
Letter of Credit (L/C): A financial document issued by a bank, guaranteeing payment to the supplier upon presentation of specified documents confirming the shipment of goods.
PayPal or other online payment platform: For smaller transactions, you can try to use platforms like PayPal can be convenient and provide buyer protection.
Credit Cards: You can use them to pay suppliers in foreign currencies, and transactions are usually subject to currency conversion and foreign transaction fees.
Online Escrow: Most online marketplaces, such as Alibaba, also act as an escrow between the supplier and you. They will withhold your payment until you receive the goods according to your expectations before releasing funds to the supplier.
Three essential rules for a seamless import to the USA
Follow proper import regulations
First, ensure that the products you intend to import are not offend any restrictions or bans in the USA. Furthermore, you also should check whether your goods infringe the Intellectual Property Rights.
Second, you should ensure the products meet all USA safety, quality, and labeling standards while submitting accurate import documents. And use the correct HTS code to classify your goods.
Provide detailed product information
Including detailed product descriptions, specifications, and images in your import documentation is essential for a seamless customs clearance process. It is illegal if you have provided CBP with inaccurate information about the shipment and its value.
Obtain the right customs bond
As we mentioned before, a customs bond serves as a financial guarantee that you will fulfill your import obligations. Accessing the appropriate customs bond ensures a smoother customs clearance process and compliance with U.S. import laws.
Find a reliable freight forwarder to free your hands
Collaborate with a vetted freight forwarder to streamline the entire import process. Airsupply, one of the best freight forwarder China to USA, aims to help you import quality products and optimize your supply chain. They are masters in customs clearance, logistics management and can handle unexpected challenges.
Airsupply offers all-around logistics services involving air, sea, truck, and railways shipping. With expertise, they can process project logistics, DG goods, Amazon FBA shipping at competitive prices, etc. What’s more, they support various transport equipment for special cargo that require freeze, keep fresh, waterproof, and more.
FAQs on importing to USA
Do I need a permit to import from China to USA?
Importing goods from China to the USA does not require a permit in general. However, there are specific cases where certain goods may require additional permits, licenses, or certifications before importing into the USA. Pay attention to the type of goods and regulatory restrictions associated with those products.
Do I need a customs bond when importing from China?
Yes, in most cases, you will need a customs bond for China imports to USA. Whether the goods are duty-free, you should file a customs bond for imports valued at $2,500 or more.
How much does it cost to get a USA customs bond?
The import bond amount is calculated at least 10% of the duties and fees paid to CBP. The annual minimum bond amount is $50,000, but the actual bond amount can be higher based on your import activities.
