How to Import From China in 6 Steps: The Ultimate Guide

Most products are subject to import taxes (often called tariffs or duty) that are charged in addition to federal and local sales and use taxes. In the US, shipments with a customs value less than $800 are duty-free, so no additional taxes are charged.

If you plan on importing a more valuable shipment, tariffs should be a consideration when sourcing your products. The average US duty on imports from China is currently 19.3%, but certain products are taxed at different rates.

Duty rates are organized in the Harmonized Tariff System (or HTS), which classifies imports by category and assigns a taxation percentage. The U.S. International Trade Commission hosts an interactive database that can help you find the HS (Harmonized System) code and estimate the duty rate for any product you’re considering.

When selecting products to source, find each item’s HS classification to calculate its applicable tariffs and ensure its margins are still worthwhile.

According to the United States’ CBP (Customs and Border Protection), “some product categories are prohibited or restricted to protect the economy and security of the United States, to safeguard consumer health and well-being, and to preserve domestic plant and animal life.”

These laws and regulations prohibit the import of certain products altogether—such as ivory, coral, and cultural artifacts. In the case of other commodities, government agencies aside from the CBP limit entry to certain ports, restrict the quantity that may be imported, or require special treatment for the goods to be cleared through customs.

It’s important to know if these stipulations apply to any of the goods you plan to import before partnering with suppliers and making your first purchase. Failure to comply with regulations can result in fines, delays, confiscated merchandise, and even legal penalties.

Some examples of import regulations include:

• Commercial equipment: Products such as air conditioners, water heaters, and furnaces must have energy efficiency labels.
• Fruits, vegetables, and nuts: Many varieties must meet size, quantity, and maturity requirements. An inspection certificate must be issued by the FDA.
• Meat, poultry, and egg products: All varieties must include government-issued inspection certificates from the origin country, and are reinspected by the USDA upon entry.
• Seeds: Shipments containing seeds are detained pending the drawing and testing of samples upon entry.
• Wood packing materials: Pallets, crates, boxes, and dunnage must be heat-treated or fumigated and marked to certify treatment.
• Toys: Children’s articles must comply with safety regulations under the Federal Hazardous Substances Act and be inspected to define hazardous sharp edges and points.

For a full list of commodity regulations and restrictions, refer to the CBP’s Importing Guide. Try searching the document for keywords that relate to your selected product(s).

If you have questions, contact your local port of entry.

The US is one of the most import-friendly countries in the world, and in most cases, individuals and businesses do not need a license to import.

That being said, importing certain commodities require a special permit or license issued by one of the government agencies that works with the CBP. These categories include:

• Agricultural commodities such as plants and plant products
• Arms and ammunition
• Certain foods such as cheese, milk, and dairy products
• Livestock, animals, and insects
• Tobacco and alcohol
• Medical equipment and supplements
  

For a full list of license and permit requirements, refer to the CBP’s Importing Guide.

If you have questions or need help with permits and licensing, the CBP recommends hiring a customs broker. The basic role of customs brokers is to assist importers in meeting federal requirements—but we’ll cover their services in-depth down below.

Use the CBP’s free tool to find a customs broker near your local port of entry.

Supplier directories are platforms that host information on thousands of factories, trading companies, and other vendors.

Buyers can search by product, category, location, price, or apply filters to see a huge range of possible trade partners. From there, the directory either provides a messaging service or lists the vendors’ contact info in order to get connected.

Wholesale marketplaces, on the other hand, serve as B2B ecommerce sites that mainly specialize in import and export trade. They can be used to buy merchandise from suppliers in bulk.

Here are some of the top supplier directories and marketplaces for importing goods from China.

Alibaba & AliExpress

Alibaba and AliExpress—which are both owned by The Alibaba Group—are the most notable supplier and product directories for importers and dropshippers alike.

Unfortunately, a fair amount of fraud and scams take place on these sites. There’s no vetting process, and many of the vendors are unnecessary intermediaries. In fact, many high-quality suppliers choose not to list their products on Alibaba and are only discoverable elsewhere.

That being said, these sites are the easiest places to get started with access to suppliers around the world, and they offer amenities to simplify the process for beginners. So as a new importer, they’re definitely worth a look.

A search on Alibaba returns 4,000+ Chinese watch suppliers and allows buyers to filter by market, total revenue, number of employees, subcategory, location, and applicable certifications.

Global Sources

Global Sources is a large trade show exhibition based in Hong Kong and has expanded to provide a vast online supplier directory that’s available year-round.

The platform operates similarly to Alibaba but is geared toward the more advanced buyer. It is strictly a B2B wholesale directory and employs a much more involved vetting process for its suppliers.

This results in a lower volume of vendors that are consistently higher in overall quality. Global Sources is known as the go-to resource for products in the electronics and fashion apparel categories, but its sellers usually have higher MOQs (minimum order quantities) than that of other directories.

A search on Global Sources returns 1,600+ Chinese watch suppliers and allows buyers to filter by business type, company certificates, product certificates, liability specifications, MOQ, sub-category, location, experience, and more.

DHgate

DHgate is similar to AliExpress in that it serves as a wholesale marketplace more so than a supplier directory. This means it’s product-centric, making it a good choice for beginners and casual importers.

The platform is known for hosting competitively priced merchandise, but buyers frequently report disappointing quality. Generally, products on DHgate are available at considerably low MOQs.

One major advantage of DHgate is its payment handling system, which secures funds until the buyer confirms receipt of the goods.

A search on DHgate returns over 420,000 results for Chinese wholesale watches and allows buyers to filter by location, subcategory, brand, MOQ, shipping options, price, features, and more.

Arguably the best way to get connected with high-quality trade partners is to visit trade shows. Travel restrictions due to the COVID-19 pandemic are easing up in China, and these powerhouse events resumed in 2021.

While it may seem resource-intensive (and even intimidating) to attend a Chinese trade show, many retailers find that the benefit of handling products in person and forging a real relationship with their suppliers makes the trip more than worthwhile. These advantages reflect on your product quality and profit margins in the long run.

These exhibitions draw large, international crowds where English is commonly spoken, so the language barrier generally isn’t an issue. If you do desire a translator, one can be hired for about $15 per day.

Plus, most trade shows are free to attend, and the cost of room, board, and transportation in China is very affordable. This helps to make the expense an easy fit into your procurement budget.

Chinese trade shows are generally seasonal—occurring in the spring and autumn (usually early May and November). If you can’t attend in-person, many virtual options are available.

Here are the biggest trade shows to source Chinese products and suppliers.

Canton Fair

Also called the China Import and Export Fair, this event is the largest trade show in the country. Anywhere from 20,000 to 60,000 vendors are typically present, and it’s widely considered to be the most important trade exhibition in the world.

The Canton Fair is held in Guangzhou, China, twice a year and occurs in three phases—electronics; consumer goods, gifts, and home decor; and textiles, garments, shoes, and office supplies.

The Canton fairgrounds are organized into departments and phases to make navigation easy for buyers.
(Source: Riviera Tours & Travel)

Manufacturers and trade companies from all over China (as well as the greater Asia area) attend the event with products in tow. This assures that you’ll be able to find the products you’re looking for—or someone who can produce them.

Most suppliers who attend the Canton Fair are experienced in exporting to American and European buyers, so they have the infrastructure and know-how in place to facilitate transport.

For more information (plus a directory of exhibitors and products), check the Canton Fair website.

Global Sources Trade Show

This event takes place twice a year in Hong Kong. It’s strategically scheduled to occur just before the Canton Fair, which enables attendees to easily visit both exhibitions on the same trip to China.

The Global Sources Trade Show is considerably smaller than the Canton Fair, but it attracts a greater number of suppliers in certain key categories—including electronics and apparel.

The global sources trade show is regarded as one of the best resources for Chinese electronics. (Source: Beamstart)

It also provides a host of educational services during the event, including a conference on how to run a successful importing business. Prominent ecommerce entrepreneurs from around the world attend the conference to speak and learn.

Visit the Global Sources Trade Show page to learn more.

East China Import and Export Commodity Fair (ECF)

The East China Fair has been taking place in Shanghai every March since 1991.

ECF vendors primarily specialize in fashion accessories, consumer goods, art, decor, and housewares, and the fair is divided into four categorized exhibition areas.

The East China Fair hosts about 6,500 booths every year. (Source: EastChinaFair.org)

While it is a smaller event, the majority of ECF attendees come in from foreign countries. This leads to a low language barrier and focuses on import/export infrastructure.

For more info, visit the East China Fair website.

If you’re not opposed to visiting China in person, the Yiwu Wholesale Marketplace is another live way to source products and suppliers. Unlike China’s popular trade shows, this exchange is open every day of the year (except for national holidays).

The city of Yiwu hosts a massive, permanent marketplace that attracts buyers from around the world. (Source: eJet)

The city of Yiwu itself—located in East China, about 200 miles south of Shanghai—is known as China Commodity City (or CCC) and serves as a hotspot for consumer goods trade. In addition to the primary trade center, there are multiple marketplaces around the city that specialize in various types of merchandise.

Most of the vendors that populate the marketplace are trading companies that work closely with factories in neighboring provinces. You can work with them to arrange transport and future reorders, or you can choose to hire a local agent (who also aids in negotiation and purchase agreements).

Products sold in Yiwu are generally very inexpensive and have the reputation of being low in quality. Many products don’t display any branding soever, and the majority of those that do are counterfeit.

This makes Yiwu a popular sourcing destination for retailers seeking cart-stuffers and filler items for their stores. These products can be useful for cross-selling or offering “free gift” promotions.

To get more information and see a variety of the products sold in Yiwu, visit the Official Website of the Yiwu Market.

One of the best ways to source reliable suppliers is to see who your competition works with. This can be accomplished through public import records.

When imported shipments enter the US, the government retains a copy of the bill of lading and makes it available for public access. This means useful information—including the importer’s name, the supplier’s name, and shipment details—is readily available. This information is limited to shipments that have arrived via boat, but that still accounts for roughly 10 million records per year.

Obtaining these import records is perfectly legal—but that doesn’t mean it’s easy. To get it straight from the customs bureau, you have to request the information, pay a fee, and wait multiple weeks for processing.

As an alternative, you can use these third-party tools to eliminate the waiting period and simplify the process:

• Port Examiner is a free tool that allows you to search through archived import records instantly. It is functional on a small scale but lacks the features needed to aggregate raw data and export it as a CSV or Excel file.
• ImportGenius is a global trade database that allows users to download aggregate import data in spreadsheet format. Its starter plan costs $149/month, but a one-month free trial is available to get started.
• Panjiva is a much more robust tool that comes at a steep price. Its platform includes advanced search functions to find relevant import data by HS number, item category, location, and more. It also expands many import records into full company profiles and provides contact information. Membership costs aren’t disclosed, but a one-month trial is available for $400.

Once you have names of potential suppliers to pursue, search the internet for contact info and try getting in touch. We feature tips on initiating contact below.

If you already work with a reliable Chinese vendor but seek another product they don’t supply, try using them as a resource. It’s standard for suppliers to have tight networks and happily refer clients (they often make a 5%–10% finder’s fee).

When importing from China, shipping terms often refer to Incoterms (or International Commerce Terms), which are predefined sets of universal rules and guidelines that clarify the logistics of trade.

The Incoterm of your purchase describes the breakdown of shipping responsibilities between you and the supplier—including payment and liability obligations.

The main Incoterms used for importing and exporting Chinese goods are:

• FOB – Free Onboard (or Freight On Board): Indicates that the seller’s responsibilities end when the goods board the ship leaving the port of origin. On FOB, the seller manages inland transportation, loading, export customs clearance, and port expenses. The buyer selects the carrier and shipping route and manages import customs clearance and expenses. Usually, this is the best and most cost-effective option for new importers.
• EXW – ExWorks: Indicates that the seller’s responsibilities end once the goods are made available to the buyer at the manufacturing site or warehouse facility. In other words, once the order is packaged for shipment, it’s up to you to handle the rest. On EXW, the seller provides packaging and export certificates/documentation, but the buyer must arrange inland transportation, loading, and customs clearance on either end. The buyer also selects the carrier and shipping route, as well as manages import expenses.
• CIF – Cost, Insurance, Freight: Indicates that the seller is responsible for insuring the goods up until they arrive at the buyer’s port of destination. The seller also handles inland transportation, loading, and export customs clearance. The seller is in control of the carrier and shipping route, but the buyer manages import customs clearance and expenses.

It’s vital to establish the shipping terms of your order to avoid unexpected costs, liability, and potential delays—so be sure to communicate this detail with your supplier. Typically, vendors have a standard Incoterm they prefer to use, which you can address while negotiating the order.

Sending payment for bulk quantities of merchandise coming from the other side of the globe is complicated for obvious reasons. You’ll want to ensure that the right party successfully received the payment and that your order will actually be shipped once you’ve made the investment.

Typically, Chinese suppliers require a 30% deposit on each order prior to shipping, then the remaining 70% is paid once the goods are received. This helps to mitigate the risk of theft on both sides.

As you build a business relationship with your vendors, the deposit amount can be negotiated. It’s common to request a 20% or 25% deposit on the second or third order with a new supplier. Once you’ve met your trade partners in person, these terms tend to become much more flexible—you can even request 100% payment upon completion of the order.

As for sending the payment itself, there are common methods when purchasing Chinese goods for import:

1. Telegraphic Transfer (TT)

This method is a standard electronic transfer of funds between banks. TT payments are accepted by virtually all Chinese suppliers and incur a smaller fee than other options.

This method includes no level of protection against theft but is still the most highly recommended payment option by import professionals. Their reasoning is that security can be better assured by doing your homework and personally vetting new suppliers.

2. Letter of Credit (LC or LOC)

This payment option is essentially a transfer of funds that includes a level of insurance. You pay your bank, which then issues an assurance to the supplier. After your bank confirms that the exact quantity of items in your order has arrived at the correct destination, the vendor is paid.

While this added security seems helpful, it may not be worth the sizable fees that it incurs. It’s very unlikely that a vetted supplier will take your money and run—the bigger risks that importers face are problems with item quality and shipping delays. An LC provides no protection against either of these possibilities, so it’s commonly used for very large transactions only.

3. Alibaba Trade Assurance

Alibaba offers a payment processing option that works similarly to getting an LC from your bank. You submit the payment to a designated Alibaba account (with the Singapore City Bank), then it’s released to the supplier once shipping is confirmed.

Unlike LC payments, Alibaba Trade Assurance will refund your money if the shipment is delayed beyond a specified date or if the quality of the goods is not compliant with the agreed product specifications.

This method requires both parties to have an Alibaba account, but it is free to use. The only fee that incurs is the cost of processing your initial payment to the Alibaba account.

4. PayPal

This option is secure and straightforward—but not commonly used by importers. PayPal charges very high transaction fees, and many suppliers don’t have PayPal accounts to accept the payment.

When it is used, PayPal is usually reserved for small, introductory purchases—such as samples and trial orders.

Unlike domestic US dealings, having a hard-and-fast purchase contract isn’t particularly helpful when importing from China. As mentioned earlier, contracts don’t carry the same weight that they do in the US.

It does, however, help to include clearly defined product specifications that your supplier signs and agrees to. This document isn’t legally binding, but it greatly decreases your chances of winding up with a batch of low-quality, misrepresented products.

Along with your purchase order and invoice, submit a checklist or spreadsheet stating the product’s specs—such as weight, dimensions, color, material type, fabric thickness, component manufacturer, and labeling requirements. It also helps to create visual references when applicable (the more clear and straightforward you can be, the better). Here’s an example.

Product Specification Checklist

Item: Women’s chino pants, size medium
Fabric: Organic cotton, 200 gsm
Fabric Color: Pantone 443
Design: As specified in product_listing_image.png attachment
Dimensions: As specified in product_measurements.png attachment
Care label: As specified in label_design.png attachment
Zipper: YKK
California Prop 65 Compliant: Yes
CPSIA (US) Compliant: Yes

Dimensions Attachment

Images, illustrations, and visual representations of product specs help to avoid any miscommunicated expectations. (Source: Medium)

Label Attachment

Imported cargo valued at $800 or more (as according to the order’s commercial invoice) is subject to duties and other taxes. Shipments below the United States’ de minimis value of $800 are duty-free.

Duties—also called tariffs—are paid at the time of import by the importer of record—which can be you, the exporter, or another party that you designate (like a customs broker).

These taxes are assessed either as a percentage of the shipment’s value or on a per-piece (or per-pound) basis. As mentioned above, duty rates are calculated based on the precise type of commodity (identified by each product’s HSN) and the country of origin.

Refer to the government’s Harmonized Tariff Schedule to estimate duties for your shipment—but keep in mind that calculating import tax isn’t as simple as it seems. CBP’s specialists spend years training to determine correct duty rates properly, and the final charge assessed at import is up to them.

For the most accurate information on what tariffs to expect, contact your local port of entry or hire a customs broker (which is an option we’ll explore below).

Import duties are paid to the port of entry, prior to release of your cargo. Accepted forms of payment include US currency, personal checks, government checks, money orders, and travelers’ checks. Some ports also accept Visa and Mastercard.

As your merchandise reaches the United States, it will need to be filed for either informal or formal entry.

Informal Entry

As stated above, shipments valued at less than $2,500 don’t require formal entry—they are processed through informal entry, which can be done on the spot.

In these cases, the shipping company can clear them through customs on your behalf—although it often incurs a charge. Alternatively, you can process the entry at the port yourself or authorize another party to do so for you. For more info on these options, contact your carrier company, or refer to the CBP’s website.

Formal Entry

Cargo with a value of $2,500 or more must be filed as a formal entry. This requires a hefty amount of documentation as well as a Surety bond (which we’ll explain below). Generally, it’s advisable to hire a customs broker for filing formal entries.

You can expect roughly $200–$300 in customs fees for formal entries and $100–200 in brokerage fees. Of course, these charges depend on the details of your cargo.

If you used air or sea freight to transport your shipment, you’ll be notified five days from the cargo’s expected arrival. If you shipped via air courier (such as DHL), it’s standard for the carrier to take care of customs clearance for you, then bill you for the service (along with any incurred fees).

Once notified, it’s your responsibility to file an entry with the port director at the port of entry (or to hire a broker to do so on your behalf).

You’ll need to have the following documents prepared:

• A receipt or a bill of lading that states the importer of record (i.e., you or your hired broker) and the items to be imported.
• An official invoice that lists
  • US port of entry
  • Contact information of Purchaser, Vendor, and Shipper
  • Detailed description of merchandise (including country of manufacture)
  • Piece count of each product (quantities and measures)
  • Cost per item and currency
  • All charges relating to the shipment including packaging, shipping charges
  • Date of purchase
  • The invoice must be in English or accompanied by an accurate English translation
• An arrival notice, issued by the shipping carrier and authorized by a U.S. Customs Agent.

If your goods are restricted or regulated by a PGA (Partner Government Agency, such as the FDA), they may require additional forms or documents. Check the CBP’s Guide for Commercial Importers to ensure that you have everything you need for your goods to enter.

If your shipment is a formal entry, you’ll also need a customs bond.

If the principal doesn’t pay up, the CBP will collect from the surety company that issued the bond. From there, the surety company can use legal means to collect what is owed to them. When a bond is required, Customs will not release the goods until the bond is posted and regulatory requirements are met.

To obtain a customs bond, you must go through a surety licensed by the U.S. Department of the Treasury—which includes many customs brokers. To get more information and a full list of sureties, visit the CBP’s webpage on customs bonds.

Using a customs broker is not legally required in the case of importing any shipment. It is, however, strongly recommended by both CBP and industry pros when importing formal entries.

As explained above, the role of a customs broker is to assist importers in meeting Federal requirements for entry. These import/export professionals are licensed by the CBP but are not government employees—they usually work for freight forwarders, independent businesses, shipping lines, or dedicated customs brokerage firms.

Customs brokers serve importers by working as liaisons between you and relevant agencies, preparing and submitting necessary documents, properly classifying goods, and providing personalized consulting. Plus, many customs brokers sell bonds and are also agents for sureties.

Overall, customs brokers are extremely savvy in import and export laws and are actively regulated by the government agencies they work with. This makes them a vital resource to have while navigating your first formal entry.

The cost of customs brokerage varies depending on the agent and shipment, but expect to spend somewhere around $100–$200 for their services. Alternatively, many brokers are available for consulting on an hourly basis.

Use the CBP’s free tool to find a customs broker near your local port of entry. You can also contact the CBP Broker Management Branch by emailing [email protected].

In an effort to improve the security of the supply chain, CBP can (and will) select certain shipments to examine during customs. This results in delays, and the responsible party is charged an examination fee.

Highly confidential algorithms are used to evaluate the degree of risk for each shipment entering the United States. If your cargo is flagged as potentially risky for any reason, it may be selected for a customs exam.

While it’s impossible to know what exactly goes into the CBP’s algorithms, it’s accepted that these factors increase your chances of being selected for an exam:

• Lack of shipment history
• Infrequency of shipments
• Questionable chain of custody
• High-risk products or materials
• Problematic packaging or labeling
• High-risk country of origin
• Incomplete paperwork
• Consolidation with other shipments that have high-risk attributes

Ultimately, even if your shipment is totally benign and you follow every precaution, your cargo may still be included in the 1%–3% that are randomly chosen for examination.

Multiple types of exams may be done. The least invasive is an x-ray that takes two to three days and costs around $300. “Tail Gate Exam,” another possibility, will break the seal of your container or packaging to inspect its contents visually; this takes five to six days and generally incurs a $350 charge.

The most dreaded and intrusive exam requires your shipment to be transported to a Customs Examination Station, where it is thoroughly inspected and sometimes laboratory-tested. This process takes anywhere from a week to 30 days or longer and incurs thousands of dollars in fees (including drayage charges).

The best way you can avoid being selected for customs holds and examinations is to ensure your paperwork is complete, provide accurate valuations of your goods, and work with well-vetted suppliers.