Category: How To Import From China

How To Import From China, Shopify dropshipping

ALL YOU NEED TO KNOW ABOUT THE IMPORT ONE-STOP SHOP (IOSS)

Jun 23, 2021 #Elksourcing, #IOSS by 露露

This article is from European Commission website, and was republished and shared through Elksourcing with the permission of European Commission website.

Original link：https://ec.europa.eu/taxation_customs/business/vat/ioss_en#heading_0

The Import One-Stop Shop (IOSS) is the electronic portal businesses can use from 1 July 2021 to comply with their VAT e-commerce obligations on distance sales of imported goods.

According to the VAT rules applicable up until 1 July 2021, no import VAT has to be paid for commercial goods of a value up to EUR 22.

The new VAT e-commerce rules will abolish this provision as of 1 July 2021. Thus, from 1 July 2021, all commercial goods imported into the EU from a third country or third territory will be subject to VAT irrespective of their value.

What is the IOSS for?

The IOSS allows suppliers and electronic interfaces selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are imported into the EU as it was previously the case (for products over 22 EUR).

What are the advantages of the IOSS?

The IOSS facilitates the collection, declaration and payment of VAT for sellers that are making distance sales of imported goods to buyers in the EU. The IOSS also makes the process easier for the buyer, who is only charged at the time of purchase, and therefore does not face any surprise fees when the goods are delivered. If the seller is not registered in the IOSS, the buyer has to pay the VAT and usually a customs clearance fee charged by the transporter .

What is changing from 1 July 2021?

Online SellersElectronic Interfaces
From 1 July 2021 the value added tax (VAT) exemption for the importation of goods not exceeding EUR 22 will be removed. As a result, all goods imported to the EU will be subject to VAT.
The Import One-Stop Shop (IOSS) was created to facilitate and simplify the declaration and payment of VAT for goods sold from a distance by sellers from either the EU or from a non-EU country or territory. Furthermore, VAT payment is applicable only to purchases made by a buyer within the EU and for goods valued at less than EUR 150.		From 1 July 2021, the VAT exemption for the importation of goods into the EU not exceeding EUR 22 will be removed. As a result, all goods imported into the EU will be subject to VAT.
If the sale of goods is facilitated through an electronic interface to buyers in the EU, the electronic interface will be considered to have made the sale and is in principle liable for the payment of VAT.
The IOSS was created to facilitate and simplify the declaration and payment of VAT for goods sold from a distance by sellers from either the EU or from a non-EU country or territory. Furthermore, VAT payment is applicable only to purchases made by a buyer within the EU and for goods valued at less than EUR 150.

Which supplies of goods does the IOSS cover?

Online SellersElectronic Interfaces
The IOSS covers the sale of goods from a distance that are:
·dispatched or transported from outside of the EU at the time they are sold;
·dispatched or transported in consignments with a value not exceeding a total of EUR 150 (low value goods) even if the order contains more than one item;
·not subject to excise duties (typically applied to alcohol or tobacco products).		When an electronic interface facilitates the sales of imported goods from a supplier and the goods are:
·dispatched or transported from outside of the EU at the time they are sold;
·dispatched or transported in consignments with a value not exceeding EUR 150 (low value goods);
·not subject to excise duties (typically applied to alcohol or tobacco products).
The electronic interface is considered to have facilitated the sale of imported goods when it allows a buyer and a seller to enter into contact via that electronic interface, where the end result is the sale of goods to that buyer.

How does the IOSS work?

Online SellersElectronic Interfaces
Sellers registered in the IOSS need to apply VAT when selling goods destined for a buyer in an EU Member State. The VAT rate is the one applicable in the EU Member State where the goods are to be delivered.
Information on the VAT rates in the EU is available on both the European Commission website and on the websites of national tax administrations.		Electronic interfaces registered in the IOSS will pay the VAT due on sale by the buyer instead of the actual taxable seller in an EU Member State.
The VAT rate is the one applicable in the EU Member State where the goods are to be delivered. Information on the VAT rates in the EU is available on both the European Commission website and on the websites of national tax administrations.

How can you register for the IOSS?

Online SellersElectronic Interfaces
From 1 April 2021, you can register businesses on the IOSS portal of any EU Member State. If businesses are not based in the EU, they will normally need to appoint an EU-established intermediary to fulfil their VAT obligations under IOSS.
The IOSS registration is valid for all distance sales of imported goods to buyers in the EU. You can start using the IOSS only for the goods sold as from 1 July 2021.		The electronic interface can register on the IOSS portal of any EU Member State from 1 April 2021. If the electronic interface is not established in the EU, it will normally need to appoint an EU-established intermediary to fulfil the VAT obligations under IOSS.
This IOSS registration is valid for all distance sales of imported goods to buyers in the EU.
You can start using the IOSS only for the goods sold as from 1 July 2021.

What you need to do if you use the IOSS?

Online SellersElectronic Interfaces
·provide the information required for customs clearance in the EU, including the IOSS VAT identification number to the person declaring the goods at the EU border;
·show/display the amount of VAT to be paid by the buyer in the EU, at the latest when the ordering process is finalised;
·ensure the collection of VAT from the buyer on the supply of all eligible goods with final destination in an EU Member State;
·make sure that eligible goods are shipped in consignments not exceeding the EUR 150 threshold;
·to the extent possible, show on the invoice the price paid by the buyer in EUR;
·submit an electronic monthly VAT return via the IOSS portal of the Member State where you are identified for IOSS;
·make a monthly payment of the VAT declared in the VAT return to the Member State where you are identified for IOSS;
·keep records of all eligible IOSS sales and/or sales facilitated over 10 years;		·collaborate with the actual seller of the good(s) to ensure that the information required for customs clearance in the EU, including the IOSS VAT identification number, reaches the EU customs where the goods will be imported to.
·show/display the amount of VAT to be paid by the buyer in the EU, at the latest when the ordering process is finalised;
·ensure the collection of VAT from the buyer on the supply of all eligible goods with a final destination in an EU Member State;
·make sure that eligible goods are shipped in consignments not exceeding the EUR 150 threshold, even if this total is only achieved by more than one item;
·to the extent possible, show on the invoice the price paid by the buyer in EUR;
·submit an electronic monthly VAT return via the IOSS portal of the Member State where you are identified for IOSS;
·make a monthly payment of the VAT declared in the VAT return to the Member State where you are identified for IOSS;
·keep records of all eligible IOSS sales and/or sales facilitated over 10 years;

Some exceptions will apply

Online SellersElectronic Interfaces
You do not need to charge VAT on sales of goods in the following circumstances:
·You sell several goods to the same buyer, and these goods are shipped in a package amounting to more than EUR 150. These goods will be taxed at importation in the EU Member State;
·Your distance sales of goods are facilitated by an electronic interface such as a marketplace or platforms. In this situation, the electronic interface is responsible for the VAT due.		The EI does not need to collect and/or report the VAT on sales of imported goods in the following circumstances:
·The actual seller sells several goods to the same buyer and these goods are shipped in a package amounting to more than EUR 150. These goods will be taxed at importation in the EU Member State.
How To Import From China

Elksourcing：The Top 10 China Sourcing Websites or Platforms

Apr 21, 2021 #Elksourcing, #Sourcing Websites by 露露

According to Elksourcing experience, here is the top 10 sourcing platforms or websites for foreign clients in China. 

1.Alibaba  

Website: www.alibaba.com

Headquarter: Hangzhou, China 

If you know Chinese, you can find more real factories on their Chinese version: www.1688.com 

2.Made-in-China

Website: www.made-in-china.com 

Headquarter: Nanjing, China

3.Global Sources

Website: globalsources.com

Headquarter: Hong Kong, China

4.DHgate

Website: www.dhgate.com

Headquarter: Beijing, China

5.HC360

Website: www.hc360.com

Headquarter: Beijing, China

6.GongChang

Website: www.gongchang.com

Headquarter: Zhengzhou, China

7.China Suppliers

Website: www.en.china.cn

Headquarter: Beijing, China

8.HKTDC

Website: www.hktdc.com

Headquarter: Hong Kong, China

9.DIYTrade

Website: www.diytrade.com

Headquarter: Hong Kong, China

10.ECVV

Website: www.ecvv.com

Headquarter: Shenzhen, China

Elksourcing is striving to be the largest sourcing service company and her mission is to save you more time, cost and energy, reducing the risks in your business in China ! 

How To Import From China

Elksourcing：5 Common Mistakes Made by Importers

Apr 19, 2021 #Elksourcing, #Importers by 露露

It is good for importers to read about best practices; however, it’s more important to learn the common mistakes made by importers. The followings are the most common mistakes.

1) Looking for the lowest price

If you purchase something below market price, you are taking very high risks. Either quality will not be up to your standard, or you are about to get scammed.

2) Arranging shipment without quality inspection

Once a production batch is on a boat, it’s too late. Verify quality yourself or pay for quality inspection services. You need to do it systematically, at least for the first 5 shipments, after that, you can do random skip-lot quality inspections.

3) Not keeping two weeks cushion for schedule

There will be delays, with a certainty comprised between 30% and 90%. So, plan for it. Bonus: even worse than failing to plan for delays, is pushing the factory to reduce production time.

4) Paying in full while one still needs leverage

Some purchasers get a really good feeling about a supplier and agree to wire 100% of the order amount in advance. Then the manufacturer has no incentive to hurry up or to produce up to the standard. If quality issues are uncovered (and that’s only if they allow for an inspection), the factory might refuse to rework the goods.

5) Hoping an unsatisfactory manufacturer will get better over time

Based on a recent survey, it looks like it is a bad idea to give a second order to a factory that just produced substandard quality. Rather than rolling the dice (when the odds are 90% against you), nurture a backup manufacturer.

How To Import From China

Elksourcing：6 Common Mistakes for Sourcing in China

Apr 19, 2021 #Elksourcing, #repacking by 露露

Over our over ten-year experience of sourcing in China, we have come across some manufacturing nightmares that have happened in China. Here are 6 common mistakes we want to share with you.

1) Picking your partner based solely on price

This is by far the most common and most disastrous mistake we see. And it’s easy to see why. In a world where incremental margin shifts can literally make or break profitability, it’s important to be price sensitive. But it’s also important to be price-savvy. Extremely low prices should generally serve more as a red flag than as an enticement. Cheap prices are often accompanied by cheap products, unresponsive vendors, or defective or hazardous materials. This is what many jaded entrepreneurs and small business owners have termed as, “The China Cost of Doing Business.” 

2) Failing to verify your partner’s experience 

When searching out a knowledgeable and reliable sourcing partner, be sure to do your due diligence. Ensure that your partners speak Chinese fluently and maintain facilities there. Check with other importers or trade associations in your industry. Ask to speak with some of your sourcing partner’s other clients. 

3) Believing that a Chinese contract holds the same weight as an American contract

Similar to mistake #1, this blunder generally occurs when an eager customer tries to lock in a cheap price or tries to save money by circumventing a middleman and dealing directly with Chinese factories. We regularly see Chinese suppliers commit to unrealistic prices in order to secure a deposit. Once a customer has committed, the price goes up. Unfortunately, many such customers not only face losing their deposit, but they also lose critical lead time and risk losing valuable assets such as moulds or machinery. In such instances, there is very little legal recourse for the customer.

4) Expecting that things will run smoothly

Every project has its unique set of challenges and opportunities that need to be anticipated and dealt with accordingly. By recognizing and accepting the reality of occasional hiccups, you will be more apt to seek out partners that will actually navigate and resolve issues instead of abandoning you at the first sign of miscalculation or trouble. With more than a decade of experience in China sourcing, we have learned to eliminate many of the pitfalls in sourcing and manufacturing—but there are invariable challenges that arise no matter how much experience or preparation you have. Experience has shown that it is exponentially more important to plan for obstacles and avoid them, than to expect that they will never arise.

5) Assuming that the end product will match the prototype

A less common but equally disappointing mistake occurs when businesses ship off prototypes or mock-ups to Chinese manufacturers and assume that the factory or sourcing partner will be able to replicate everything to a T. The reality is that anytime a product makes the transition from prototype to production; there will be differences in the final product because the manufacturing processes are different than the prototyping processes. Each manufacturing process involves unique advantages and limitations. For instance, injection-molded parts will have injection gates on the parts—it’s simply part of the process. Conversely, milled parts have no gates. Milling is often used in prototyping whereas injection molding is used for large-scale manufacturing. By choosing a partner that shows sensitivity and awareness to such differences, you can work collaboratively to select processes that are both feasible and economical.

6) Assuming that your partner will honor their estimate

This mistake is similar to mistake #3 in that, as a customer, you have very little legal recourse when it comes to Chinese vendors, contracts, and estimates. Certainly, you can always take your business elsewhere, but, as discussed earlier, there are often serious drawbacks and repercussions associated with pulling out after you’ve committed. The best option is to choose the right partner from the outset. Even if your product must ultimately be outsourced by your partner, the right partner plays a critical role in maintaining leverage over the supplier. Not only will a quality partner have established contacts with reputable manufacturers and suppliers, but those companies will also have much more to lose than just your business if they renege on your contract or unjustifiably alter pricing.

How To Import From China

Elksourcing：Step by Step Starting of Quality Control

Apr 19, 2021 #1688 dropshipping service, #Elksourcing by 露露

Quality control is a necessity for most shipments. The constant search for cheaper suppliers, the bad habit of subcontracting to lower-grade factories, and the high risk of communication mistakes, all make a strong case for systematic inspections.

1) Establish clear expectations

Some buyers choose a sample, negotiate a price, and then wait for delivery. This might work for off-the-shelf items with basic requirements, but not for most made-to-order products. 

You should try to get golden samples (i.e. representative of what you expect to get out of bulk production), but this is usually not enough. You also have to confirm if your supplier accepts written specifications, which will become the checkpoints for the QC inspector. 

2) Don’t only rely on final inspections

Final random inspections are good for approving major aspects of production, but they tend to put a lot of pressure onto the supplier: what happens if serious non-conformities are found at that time? It is too late. 

Instead of doing inspection at the end, try to do inspection when the goods are in process. Issues can get caught and corrected early: this is not only an extra safety for the buyer, but also a helping hand for the factory. 

Early inspections (during production) have several positive side effects. They are a way to ensure that production is taking place in the right factory. Samples can be picked up randomly for lab testing. And it can prevent long shipment delays if the factory corrects course immediately after quality issues are noticed.

3) Inspection is a must

You should write “Quality inspection required prior to shipment” on your purchase order.

If you pay by letter of credit, you can require a passed inspection report from your nominated QC provider. Inspection is a must, not an option.

4) Find the right balance between helping and arm-twisting

A buyer can play it “tough”, be “easy” on his suppliers, or find the right balance in between.

The “tough” way: a focus on final inspections performed rigidly.

Suppliers have no choice: either they comply with the rules, or they are charged penalties and/or re-inspection fees. 

It works well for large buyers who are adequately organized and who have the power to charge penalties systematically. But small-and-medium-sized importers can seldom play this game.

The “easy” way: in-line inspections and/or tailored final inspections.

As noted above, inspections during production don’t create much adversarial tension, and there is less timing pressure.

Once production quality has been secured, final inspections can be a little less formal. Why? Because it is less risky to loosen requirements about the proportion of presented products.

How To Import From China

Elksourcing：What is Fulfilment by Amazon?

Apr 17, 2021 #Elksourcing, #inventory warehousing by 露露

Fulfilment by Amazon (FBA) is an exclusive service provided by Amazon using which a seller can store their products in special warehouses of Amazon known as “fulfilment centres” and Amazon takes care of delivering their products to their final customers. Through FBA, you can relieve yourself with the responsibility of ensuring quick and reliable delivery of your products to your customers.

If you opt for FBA, Amazon will keep a track of your orders, pick the required product from the fulfilment centre, pack it and ship it right to your valuable customers. Moreover, Amazon will also provide a round-the-clock customer support regarding your products being delivered to your customers. This would ultimately help you increase the scale of your operations and widen your customer reach.

What benefits can you avail by FBA? Here are some of the key benefits you can avail if you opt for the FBA service of Amazon:

1) “Prime” Eligibility 

By choosing the FBA service of Amazon, you can make your products eligible for delivery for the Prime members of Amazon. This would facilitate your customers to get your products delivered to them using the exclusive two-day shipping and free shipping offers. All the products listed through FBA would be displayed on Amazon’s website with its signature Prime logo.

2) Trusted Service 

Amazon has garnered enough goodwill and trust in the online shopping market and you can make use of the same pertaining to your products. Amazon will also handle the return of your products effectively if your customers feel the need to do so according to their service and return policies.

3) Help Your Business Grow 

There is no limit for the number and type of products you can store with Amazon through FBA. This would not only ensure faster and more reliable delivery but would also help you in diversifying and growing your business enterprise ensuring high productivity.

4) Save Your Hard-earned Money

By choosing FBA, you will be charged for the storage space provided to you and the products shipped by Amazon as and when they are delivered. As all the shipping costs are included in your charges with no extra charge levied for Prime facilities, you can save decent money by going the FBA way.

How To Import From China

Elksourcing：7 Tips on Buying from China

Apr 17, 2021 #Elksourcing, #express by 露露

Buying from China is not an easy task, especially for the newbies. The importing process can be extremely complex, confusing, and costly. Expected gains can often be erased by long transit times, rising or fluctuating delivery costs, regulatory fees, and unexpected delays.

Here are 7 tips for how to buy goods from china, and what you can do to make the process smoothly and efficiently.

1. Plan your import objective 

Before embarking on the actual importation process, be clear about what you want to achieve. Choosing the wrong products will make the business lose sufficient time and money. All successful importers know the importance of choosing the right products for reselling. Therefore, be sure to gather sufficient informationabout your goods of choice. Also, obtain descriptive literature, product composition, and samples before making a final decision. This is crucial in furthering your understanding of the products as well as what you will get in return. Once you have sufficient information about the products that you want to buy, learn about how they can be imported. As you will be shipping in bulks, outsourcing the work to a freight forwarder is the cheapest way to go. However, if your packages are small and for personal use, courier delivery service will work better in comparison to the use of big shipping agencies.

2. Familiar with all rules and regulation 
Before buying goods from China, research on the rules and regulations that you need to comply with. Usually, import rules often depend on the type of products that you are importing. For instance, children’s products such as toys have regulation on packaging and credibility.

3. Choose reputable Chinese suppliers 
First and foremost, it’s important to understand that the importer is liable for all the goods that they choose to buy. As such, any compliance irregularities will be directed towards you, not your supplier. To avoid any discrepancies, ensure that you work with a reputable Chinese supplier. Also, make certain that the supplier equally complies with all set regulations.

4. Negotiate the right deal 
Understanding your supplier’s priorities as well as your own strengths and weaknesses will allow you to negotiate the right deal. For instance, you could offer to pay your suppliers more promptly in exchange for better prices. Chinese suppliers believe in building goods business relationships. As such, they will be happy to avail products to you regularly.

5. Have a clear contract in place 
As with any other business transaction, importing goods from China should also involve a clear contract between you and the suppliers. Clearly, state the payment and delivery terms that you have been agreed upon, the currency and payment method used.

6. Understand all commodity codes 
Buying from China requires using the right 10-digit commodity code for your goods. This will assist in filling out the paperwork accurately and even looking up important information such as duty rates and restrictions that apply to your goods.

7. Be conversant with taxes and duties on imports
All traders who buy goods from China have to pay a Value-added Tax (VAT) and import duty before being cleared for entry into their country of choice. However, this is usually dependent on the classification of goods. Follow these steps and you will benefit from importing goods from China. Whether you are a first-time importer or have been frequently using this process as a line of trade, these tips will always be applicable. They are exactly what you need to make your business thrive.

How To Import From China

Elksourcing：Importance of Registering Trademark in China

Apr 17, 2021 #Elksourcing, #private label by 露露

In China, trademark is registered on a “first to file” basis. The trademark will be protected for the person who first applies for registration of the trademark. The registration should be considered both by people interested in selling to China and those planning to import goods from China.

1.    Who should register a trademark in China?

You should register your name and logo when you buy goods in China, on which you place your logo (or if it is on the package). Registrations should also be considered when we decide to sell our goods in China. Thanks to that, we will be sure that only we have the right to use our logo throughout China.

2.    Consequences of not registering a trademark in China

There are many consequences of not registering a trademark in China. Often there are situations when it’s not that easy to get your logo back. Certainly, you will need the help of qualified lawyers. However, lawsuits can be avoided by registering your mark before you start exporting or producing in China.

3.    The right to detain goods in China – confiscation

People who only produce goods in China and sell them abroad (importers) should also reserve their logo. When they do not do it, unpleasant situations may occur, related to the loss of rights to their goods. If the producer does not reserve his logo, someone else will probably do it. The third party can hold unregistered marks of companies producing in China (importers). After taking over the logo, there are often situations where the person to whom the logo is actually registered offers the company to buy their own products.

4.    Sales of unregistered goods on e-commerce websites

When the trademark has not been registered, it very often happens that our products appear on Chinese e-commerce platforms. As for a service such as Alibaba, registering a trademark in Europe or the United States should be enough to submit a request to remove the product. However, when these products appear on Taobao or 1688.com portals, the situation looks much worse. Having a trademark registered in China turns out to be necessary in this case. The website’s response will be more efficient and faster.

5.    A conclusion of a contract with a Chinese distributor

It may happen that when we decide to export goods to China, we will encounter a cheating distributor. Before you send your products to China, it’s worth having a registered trademark there. A fair distributor will remind you about it and insist on registration. However, you can also meet a cheating person who will register the trademark in their name or the name of a friend even without telling you. Not registering your logo leads to the theft of trademarks by cheating distributors.

6.    No possibility of selling goods in China

The Chinese do not recognize the customary right to own a trademark and have little idea about commonly known brands. If you didn’t register the trademark, you can be sure that someone will do it and will take your right to use the logo in China. Most probably later we will be accused of violating “someone’s” trademark and we will lose the opportunity to sell our products in China.

7.    Problems with winning lawsuits

Until you register your trademark in China, you do not have any rights to it. As a result, accusing a Chinese company of taking a logo is often a lost cause. At the moment when we do not have a registered trademark in China, we have no base for accusations. There are many situations when lawyers specializing in the protection of copyright, discover in court that their clients have not registered trademarks in China. Such cases are really hard to win and usually do not end well.

8.    Trade of trademarks

There is a special supermarket on the Internet for trademark sales in China. The platform is associated with the China Technology Exchange and operates with the approval of the State Council. When we skip the registration of a trademark in China, our logo can be found on this page. At the time when no one has bought our logo, the matter is a bit simpler. However, it should be remembered that in the light of the law in China, we do not have rights to this mark. If someone had already bought a logo from this site, the case might be more complicated. We have to obtain evidence that the marks have been taken over for profit so that it can give rise to a dispute.

Many companies, both European and Chinese, assume that the costs of registering trademarks in individual classes are high. They believe that it is better not to register the logo. However, this attitude turns out to be much more expensive than it might seem.