China's GDP grew 11.4 percent in 2007, to 24.6619 trillion yuan (3.43 trillion USD), 0.3 percentage points
higher than 2006 (11.1%), according to the China National Bureau of Statistics (1).
In the Michigan State University (MSU-CIBER) annual index of Market Potential Indicators for Emerging Markets - 2008,
the top three emerging markets are Hong Kong, China, and Singapore. Buying from China is an important business option in light of the rapid development of manufacturing capacity,
the range, comparative quality and significantly lower cost of Chinese-made goods.
If you're importing products from China or utilizing the services of a China gateway distributor to acquire products wholesale and drop ship them to your customers, there are several
things you need to consider. It is prudent to choose your products carefully and work with organizations that offer buyer protection (e.g., escrow service, satisfaction guarantees, etc.).
There's an interesting series of videos by Andrew Minalto (see right) that explores some of these issues, and we look at others below.
There have been many recalls of China-manufactured products since 2007. There is reason to believe that government policy in China will ensure more effective quality control,
even as improved regulations and new legislative initiatives in other countries are promulgated to protect their citizens against hazardous imports from China.
In his recent book, Why Your World Is About to Get a Whole Lot Smaller, Jeff Rubin, former chief economist at CIBC World Markets Inc., predicts that global economies will regress and
local economies will emerge as oil and gas prices once again rise. Transportation will become too costly to justify the levels of import and export. This idea is not without controversy,
notwithstanding the fact that oil and gas are on the rise again, but there's a coincident set of developments that also bears on the equation.
Money is tight for many who have lost jobs,
savings and pensions, and there is growing reaction to the fact that many US and Canadian companies have contributed to this by outsourcing their manufacturing to China. While some consumers
care little about where what they want has been manufactured, others are bemused or troubled by the fact that China-made products and produce is pervasive, overshadowing more regional offerings.
In my local superstore, for example, the only garlic available is organic, coming from California, and garlic from China! "We never carry locally grown garlic," says the produce
clerk; "I don't know why." And then there's the announcer in a local television commercial, exhorting us to buy Canadian-made barbeques and avoid this "cheap crap" (he quickly raises and
lowers the apparently flimsy lid of a shiny new barbeque) made in China.
Now, obviously, in addition to the recalls and items of lesser quality, there are many good products coming from China. With diligent sourcing and targeted niche marketing,
substantial profits can still be made from the sale of quality products. Choose your niche carefully. And be prepared for surprises.
An interesting set of videos by Andrew Minolta (2008)
How to import cheap products from China to sell on eBay (without being scammed).
Paul Midler, president of China Advantage, has been involved with China for more than 15 years, and in the course
of his manufacturing career, has had dealings with thousands of Chinese factories.1
...the deliberate and secret habit of widening profit margins through a reduction in the quality of materials.
Importers usually never notice what's happening; downward changes are subtle but progressive. The initial production
sample is fine, but with each successive production run, a bit more of the necessary inputs are missing... [Read more]
Though Midler provides many examples to illustrate this point, he also believes the situation is "by no means hopeless", adding that Japan once had a reputation for
manufacturing products of poor quality. The key to resolving the situation has to do with incorporating "a habit of quality into the culture". While "China is not an easy place in which to do business," he writes in an open letter on his website, "I think it is worth the effort".2
Quality controls are being implemented in China, by other countries that import made-in-China goods, and by companies that outsource manufacturing to China. These developments take time,
however, and the recent spate of product recalls has raised concerns among entrepreneurs interested in dealing with wholesale drop shippers
of products from China. We recently posted an article regarding the quality of products manufactured in China, citing the opinion of Peter J. Williamson, professor of International Strategy and Asian
Business at INSEAD and coauthor of Dragons
at Your Door: How Chinese Cost Innovation Is Disrupting Global Competition:
Don’t panic over a few high-profile blunders by Chinese sourcing partners — as damaging as they may have been. With smart management,
there remains enormous opportunity for profitable relationships.
The second danger in the reaction to the latest recalls of Chinese products is that managers will give in to the myth that all
Chinese competitors are simply low quality, low price. The lesson here is simple: don’t allow such a delusion to cloud your
thinking. If you do, you are likely to miss the fact that the best Chinese companies, such as Lenovo, Huawei, Haier, along with
many others, are using cost innovation to rewrite the rules of the global competitive game. The very real risk to American business
is that management will not see China’s emerging dragons coming with high technology at low cost, variety at low cost, and specialty
products at mass market prices until it’s too late.
On this page and in separate reviews on this site, we profile four firms that provide mechanisms designed to protect buyers from counterfeit products or products of poor
quality. We recommend that you learn as much as you can about your prospective suppliers, purchase in small quantities first, and have your order shipped to your own address. Once you've
gone through the process, you can proceed with greater confidence.
CNN's Lisa Sylvester reports on dangerous drywall imports from China, and how homes across the U.S. are affected. (30.03.09)
Top Stories "product recall" + "made in china" — Google News
Sourcing product from China is best undertaken through mechanisms that ensure quality control and buyer protection. Among the many gateways
to China manufacturers, there are two with which we have experience. Both drop ship. And we list several more, below the reviews.
DHgate
DHgate.com, a comprehensive
business-to-business trade solution, is a well-known gateway to China, offering access to >10 million
product listings from >100,000 dedicated Chinese suppliers. DHgate serves international buyers through a 24/7 eMarketplace
with cost-effective trade services designed to maximize profitability and competitiveness for international buyers. Located
in Beijing, the company offers an online business platform and escrow service (read more about this, below) that safely enables
you to purchase directly from China. DHgate is PayPal's largest client in the Asia-Pacific Region.
Escrow Service - The Ordering Process
You are protected against fraud DHgate provides an escrow service for your
protection. Escrow is a deposit of funds by one party for delivery to another party upon completion of a particular condition or event. In the case of
online purchase, a buyer makes payment to a third party (DHgate, in this instance) while the seller ships the item(s) to the buyer. When the buyer confirms receipt
of and satisfaction with the item(s), DHgate releases the payment to the seller.
This process reduces the risk of fraud because DHgate collects, holds and disburses funds on the buyer's behalf. Shipped
merchandise is tracked and its delivery is verified. The seller isn't paid until the buyer accepts the merchandise. In
the event of a dispute, DHgate has a
Dispute Process in
place to help both the buyer and seller find a settlement.
When you make a payment to DHgate, it is held until you
authorize that the payment be released to the seller.
Seller Accepts Order
Once your payment is received, DHgate will need approximately 1 business
day to confirm your payment. After your payment is confirmed, DHgate will notify the seller and check if he can accept the order.
Seller Ships Package
If the seller accepts the order, he needs to prepare the merchandise
within the specified processing time. Once the merchandise is shipped, you will be notified with the tracking information by email.
Buyer Checks Package
When you receive the merchandise, carefully check the quality
and quantity of the item(s).
DHgate Pays Seller
If you are satisfied with the merchandise, visit "My DHgate"
and click the "Complete Order" link so that payment can be released to the seller. You are also encouraged to leave feedback.
China Factory Zone is an exclusive online wholesale place where buyers from all over the world can find the best-priced items through direct bulk purchases
from small and medium-sized manufacturers from China. All times in the China Factory Zone are verified by DHgate's professional team before they are listed. You will
find a wide range of quality, original products at the most cost-effective prices.
Factory Zone Benefits
• Even more competitive prices
• Steady and abundant product resources
• Sellers' capability of mass production
• 1-year warranty on most items
• Reliable SME sellers
• 24-hour live help service
• One-on-one personal service
NOTE:
All China Factory Zone items are sold
directly from factories, so the price is much lower than the market price. There is a requirement on purchase quantity for each item. The minimum purchase quantity for each item is $300
USD (excluding sample orders). If you want to purchase just one piece of certain item as a sample, you can place a sample order, for
which no minimum quantity is required.
The Clearance Zone is frequently updated; it features liquidations up to 65% off on brand new, good-quality
selections of shoes, jewelry, electronics and more.
DHgate now enables you to create your own customized products.
You can personalize thousands of different products — clothing, consumer electronics, gifts, toys, etc. — with your company's logo, and this service
also provides you with one-on-one support.
From DHgate.com... Import Taxes
DHgate's sellers don't add taxes, VAT, or other hidden charges. You pay us what you see
on the order screen, i.e. goods subtotal + shipping cost.
HOWEVER - In most countries, you have to pay taxes or duties on imported goods. Sometimes
goods under a certain value, or in certain categories, do not incur taxes.
The rules are different in every country. Unfortunately there is no way for our sellers to know
the rules, regulations, customs, traditions, practices, loopholes, schemes, systems, paperwork,
codes, laws, or rulings of every single country.
Therefore, we cannot, and will not, offer advice about taxes in your country. As the buyer, it
is your responsibility to find out that information before you order.
If you have to pay import taxes and/or additional duties and sales taxes, then you would have to
pay that to the courier upon receipt of the package(s). We can't calculate this for you and
there is no way to pre-pay it. If you are drop-shipping or sending a gift item to someone,
please make sure they are aware of the possibility of having to pay taxes when receiving the goods.
Please find out as much as you can about your import taxes in your own country before completing your
order. If you find out information about the import tax situation in your country, and you believe
there are ways to minimize the taxes you have to pay (or eliminate the taxes altogether), just tell
the seller what you need by putting instructions (regarding labeling, packing, declarations,
invoices, etc.) in the comments field during checkout. Our sellers are more than happy to
follow your instructions.
Chinavasion
Chinavasion, in Shenzhen, China, was founded by European business people and
has staff from Greece, Germany, the UK, and several provinces in China. They ship products to resellers all over the world. Business is done in English
and in U.S. dollars.
Chinavasion is much more user-friendly than DHgate (see below), and they provide useful instruction (email courses and onsite presentations) for prospective buyers.
Why You Need To Do Your Own Research
Import and tax rules are (a) different in every country; (b) changing often; (c) highly dependent on the shipment size and contents; and (d) not consistently applied by your country's different ports and customs houses. Therefore Chinavasion cannot offer you specific advice about how much tax you will have to pay, or any guarantees related to this issue.
We will always do our best to help you import successfully and profitably. If you have any doubts, simply open a live chat or help ticket with our English-speaking Customer Support Team.
Sometimes the importing rules according to your country's government and customs are not enforced as strictly or consistently as they say. A good way to find out the realities of importing into your country is to begin with a series of smaller orders from Chinavasion and make careful notes of what (if any) steps you had to go through or charges you had to pay. You may be pleasantly surprised how easy importing is for you. Who Provides Import Paperwork?
In general all the paperwork required for clearing your goods through customs is provided by Chinavasion. Usually the shipping invoice and courier waybill included with all shipments from Chinavasion is sufficient.
Sometimes additional paperwork such as product licences are required by customs. We track all of your shipments until they reach you, so if there is such a requirement, we will respond to it promptly on your behalf, usually without the need for you to take any action.
You may need to show a copy of the shipping invoice to receive your products in some cases, and we will give you the papers you need on request.
It is your responsibility to confirm the details of the shipping paperwork with Chinavasion before the goods are sent out. We will follow your instructions for customizing the shipping documentation according to your requirements, and you, as the importer, bear full responsibility for any exception arising from this paperwork. Tax Liability
The importer is solely responsible for all import taxes, sales taxes, and any other customs-related charges.
Chinavasion accepts no liability for any such charges. Importing taxes and charges cannot and will not be quoted/predicted, and they cannot be reimbursed to you under any circumstances.
If an importer refuses to pay taxes or otherwise refuses to comply with requirements of the importing or customs clearance process, the goods will usually not be delivered successfully. In such cases the goods could be seized by customs, destroyed, or returned back to China. In any such cases you, the importer, bear sole responsibility provided no error has been made by Chinavasion in following your order requirements.
Import Taxes And Dropshipping - Warning
Dropshipping means you "sell" goods to an end customer, and Chinavasion sends the goods directly to your customer without you handling the goods. This means that the end customer is the consignee of the package being sent from China, and this means your customer is also considered to be the "importer" of the goods. Thus, your customer bears full responsibility for importing the goods and paying any applicable taxes, duties, and other charges. Make sure you research the situation and inform your customers clearly in advance! Responsibilities small print:
In this system, you as the Dropship Vendor are solely responsible for informing your Dropship Customer about the China origin of the goods, the shipping method, the import declaration used, the import process, any taxes or charges that are likely to be charged or could be charged, and the mechanism for receiving goods and paying applicable charges. You are solely responsible for establishing and communicating whatever delivery terms, warranty, guarantees, or other contracts that you wish to establish with your customers; in these matters Chinavasion accepts no liability.
When dropshipping via eBay selling, Amazon selling, or any similar third party sales platform, you must additionally abide by their terms and conditions for clarifying the delivery/import process for your customers and clearly communicating/advertising your terms before the sale.
In an exception case where a Dropship Customer refuses to receive goods, refuses to pay taxes, or otherwise fails to comply with the import process, you as the Dropship Vendor bear full responsibility for resolving the issue directly with your Dropship Customer. In dropship cases Chinavasion as the Dropship Wholesaler will be deemed to have fulfilled all responsibility for delivering the order, and Chinavasion will not accept any liability in such cases. In practical terms this means that in such a failed delivery case, you would have to decide whether or not to compensate your customer, but Chinavasion would not offer you any form of refund.
If you consistently fail to inform your customers properly about their import responsibilities, leading to delivery exceptions, we reserve the right to close your account and cancel any outstanding orders.
More China Wholesale & Wholesale Drop Ship Companies
Wholesale Drop Shipper Hong Kong, China Also owns Disnet1.org
Wholesale Drop Shipper Hong Kong, China
Wholesale Drop Shipper Hong Kong, China
Wholesale Drop Shipper Futian District, Shenzhen, China
Tariffs and Tax - Resources
Source: Chinavasion Support Center (Accessed 30.05.09) Customs Clearance Issues
All imported goods are subject to Customs clearance in every country. When you buy from Chinavasion, the goods are sent from China. Therefore you are importing, and you are the importer
responsible for the goods when the goods pass through Customs in your destination country. According to our general terms and conditions, you may order anything you like from Chinavasion
and we will fulfil your order, but it remains totally your responsibility to find out in advance if the products are permissible to import into your destination country, and if so what
clearance requirements, taxes, policies etc apply in that country. Chinavasion cannot and will not offer advice or pre-shipment information on Customs issues in any regard.
From over 3 years of shipping thousands of orders a week, we can confirm that in over 99.9% of shipments from Chinavasion there is no issue whatsoever with Customs clearance. Furthermore
in the majority of the rare cases subject to a delay in Customs, the goods are released and delivered successfully. This is because the clearance via normal shipping methods (couriers or post)
is handled professionally by the shipping company, and Chinavasion is an experienced provider of correct shipping documentation and compliant products and packaging.
You need to be aware that, since any order you make on Chinavasion.com will pass through your country's Customs, the Customs have the right to hold and inspect your goods according to their
policies.
Every country's Customs has different policies, and these policies can vary substantially, for example [...] [Read More]
To obtain U.S. tariff rates for specific imported products, to check on regulations such as import quotas, or for general import
information, contact the US Customs office nearest you or
call 1-877-287-8667 (outside Washington D.C. only)...
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