FAQ - Sourcing and Importing From China

Questions

Potential Savings from China

How much can I save?
Which product areas have the highest savings?
What products should I import from China?

 

ChinaFind Services and Pricing

Is ChinaFind a trading company?
What kind of products can ChinaFind source from China?
Does ChinaFind have preferred suppliers?
Why pay ChinaFind to find suppliers when I can find them online?
How long does ChinaFind’s sourcing process take?
Why does ChinaFind charge a retainer?
What is the difference between project based and monthly fee structures?
What kind of businesses does ChinaFind work with?


Value-Added Tax

What is Value-Added Tax and does ChinaFind handle this?


Corporate and Social Responsibility in China

How does ChinaFind ensure that our social responsibilities such as sweatshop labour and environmental issues are met?


Intellectual Property Rights Protection in China

Is the information I send to ChinaFind confidential?
How can ChinaFind help to protect our intellectual property rights in China?


Minimum order quantity, sampling and prototypes

Do suppliers in China have minimum order quantities?
I have a sample of the product I want made, should I send it to China?
Which ChinaFind office should I send samples to?
Can ChinaFind assist me in having prototypes made in China?


Contract and Price Negotiation in China

Am I getting the best deal?
Why does ChinaFind negotiate the price?
How to negotiate with Chinese factories?


Quality control and assurance

I’ve personally had or have read about bad experiences importing from China, how can ChinaFind prevent this from happening to me?

Are products made in China low quality?


Logistics and Shipping

Does ChinaFind handle shipping?
What are my responsibilities for receiving the shipment?


Visiting China

Is it necessary to visit the supplier in China?
Can ChinaFind assist with my China factory visit?

 

Answers


 

Potential Savings from China


How much can I save?

Which product areas have the highest savings?

What products should I import from China?

China produces up to 80% of the worlds production of manufactured products. While this will vary from between industries, it goes to show that China has the comparative advantage when it comes to exporting manufactured products.

Savings of course also vary however ChinaFind we see average savings between 30 and 60% but we have seen this go as high as 80% in some cases.

Generally if a product is labour intensive and is made from materials readily available in China, there will be a cost saving from shifting production to China. Things to look out for include taxes and tariff barriers, import quotas and material price fluctuations and shortages.

ChinaFind can make general recommendations but as part of our services we conduct full in-depth studies into the entire process to ensure you will save when using Chinese suppliers.

Related articles: How to Buy from China

For more information on products we source, see: Products Sourcing Examples

For any enquries, please contact us

Go to top of page


ChinaFind Services and Pricing


Is ChinaFind a trading company?

ChinaFind is not a trading company, we distance ourselves from trading company as our focus is on quality and matching suppliers with projects. We are not interested in making a quick buck off low quality products, seconds or over-runs.

For more information about the company, see: About Chinafind

Go to top of page

What kind of products can ChinaFind source from China?

Over the years we have developed clients in several product areas however technically we can handle almost any product. Rather than products areas we specialise in quality control, factory due diligence and OEM solutions.

For more information on products we source, see: Products Sourcing Examples

For more information about the company, see: About Chinafind

Go to top of page

Does ChinaFind have preferred suppliers?

No we don’t. Sometimes in special cases where due to time or other constraints we can work with suppliers that we already have a history with upon client request.

However we believe that each project is different in ways that can completely change the path of supplier selection and we highly recommend that you follow our standard process which is to go through full supplier evaluation and selection.

Related articles: How to Find a Manufacturer in China, Find Supplier or Manufacturer from China

For more information about the company, see: About Chinafind

Go to top of page

Why pay ChinaFind to find suppliers when I can find them online?

Finding a supplier online doesn’t mean you found the supplier. Deep knowledge and on site verification of product experience, management, engineering capability and production capacity is essential to match correct supplier with clients need.

Finding out the hard way that who you thought was the supplier was actually outsourcing production or worse is almost inevitable without the right processes in place.

While it is possible with a bit of luck to find suppliers via online services such as Alibaba.com this should only be there very start of the search phase.

A search for a product term will result in 1000s of potential suppliers, the process of eliminating fake, illegitimate and unfit suppliers and then educating your shortlisted suppliers on the product requirements is what a sourcing agent such as ChinaFind specialise in and do every day.

Finding the right supplier and being able to communicate your needs effectively is the most important part of the process and can so easily go wrong if not done correctly.

For more information about the company, see: About Chinafind

Go to top of page

How long does ChinaFind’s sourcing process take?

While we have completed ‘fast-track’ projects, we advise leaving a minimum of 3 months from commencement to delivery.

For more information about the company, see: About Chinafind

Go to top of page

Why does ChinaFind charge a retainer?

Projects generally take between 3-6 months to complete, sometimes much longer while a large portion of our costs are incurred up front.

ChinaFind retainers are geared towards the difficulty of the project and represent a commitment to purchase from China.

If you are serious about purchasing from China and are aware of the savings you will receive, a retainer should not be an issue.

For more information about the company, see: About Chinafind

Go to top of page

What is the difference between project based and monthly fee structures?

At ChinaFind we are happy to tailor a solution to each client’s individual situation. However to simplify things we have two general categories.

For clients with one or few sourcing projects we can charge an upfront retainer with a management fee based on a percentage of the order value.

Alternatively if you have many ongoing projects we can set-up a monthly, quarterly or annual service fee with a much lower management fee percentage.

An account manager will discuss which solution works best for you or can tailor one specially for you. Both fee structure cover all stages of sourcing including production management, delivery and usually 12 months after service.

For more information about the company, see: About Chinafind

Go to top of page

What kind of businesses does ChinaFind work with?

We work with a wide range of businesses however most clients are in the small to medium size category. Our expertise, China location and low-cost set-up can be leveraged by any company wishing to import from China.

For more information about the company, see: About Chinafind

For any enquries, please contact us

Go to top of page

 

Value-Added Tax


What is Value-Added Tax and does ChinaFind handle this?

Value added tax is a tax paid domestically in China, it impacts the export process as factories are able to claim VAT paid on materials used in production back when they sell internationally.

While it is complicated, it should not be overlooked as a very important part of the sourcing process.

Essentially every good is charged 17% value added tax however companies can claim a rebate of up to 17% depending on the product classification when they do not sell the good domestically.

For example if a product has a 10% rebate it can claim 10% VAT back so effectively they only paid 7%. Knowing this can give you more leverage in negotiation, and it can also raise alarm bells if the company is asking for payment to a non- China mainland bank.

Related articles: How to Arrange China Customs Brokerage and Freight Shipping From China

For any enquries, please contact us

Go to top of page


Corporate and Social Responsibility in China


How does ChinaFind ensure that our social responsibilities such as sweatshop labour and environmental issues are met?

ChinaFind only works with suppliers meeting its own high standards as well as those of our clients.

We ensure these are met through ongoing on-site evaluation – the only effective way to be sure of continued compliance.

Related articles: Find Supplier or Manufacturer from China

For any enquries, please contact us

Go to top of page


Intellectual Property Rights Protection in China


Is the information I send to ChinaFind confidential?

ChinaFind is very sensitive to the confidential nature of information of our clients. We take extreme measures to keep all information confidential and only release information to suppliers with direct approval.

For more information about the company, see: About Chinafind

Go to top of page

How can ChinaFind help to protect our intellectual property rights in China?

One of the most effective way of protecting your IP rights in China, is selecting a good supplier in the first place.

Reputable suppliers with a strong history and quality, forward driven management will see a vested interest in protecting their customers IP. This should be the first step.

Once a supplier has been selected further steps can be taken including:

  • Ownership of tooling which can then be moved if required
  • Separate component production from assembly, no single factory is producing the entire product
  • Sign non-disclosure agreements and letters of confidentiality and exclusivity with thesupplier
  • Trademark your brand in China. Put the Chinese legal system on your side, trademark applications are inexpensive in China

Related articles: Find Supplier or Manufacturer from China

For any enquries, please contact us

Go to top of page

 

Minimum order quantity, sampling and prototypes


Do suppliers in China have minimum order quantities?

Yes. Most factories will not keep any stock and often samples will be made by hand so they will charge inflated prices.

Their efficiency is dependent on large production runs which will vary in size depending on the nature of the product.

Most labour intensive low value products will have very high production runs so the minimum quantity will be higher.

Generally a single container is a good order size and is a good way to ensure production savings as well as simplifying shipping.

Go to top of page

I have a sample of the product I want made, should I send it to China?

Generally we recommend sending around 5 samples to our China office.

This will allow us to send samples to multiple potential suppliers at the same time saving time as well as allowing us to retain 1 sample in our office.

Go to top of page

Which ChinaFind office should I send samples to?

Please check with your account manager, we have two offices in China strategically located to be close to different manufacturing industries.

Go to top of page

Can ChinaFind assist me in having prototypes made in China?

ChinaFind can assist you with having prototypes made in China, keep in mind prototype costs are generally higher than production runs or even samples however it is a very good way to begin the China process and build a lasting relationship with your future supplier.

For more information on products we source, see: Products Sourcing Examples

For any enquries, please contact us

Go to top of page

 

Contract and Price Negotiation in China


Am I getting the best deal?

In China be careful about prioritising price over quality. Selecting a supplier because they quoted the lowest price is almost certainly asking for problems.

At the same time if you tell a factory a target price they will simply find a way to meet it and still make money, by using lower cost materials and cutting our parts of the process such as QC.

At ChinaFind we generally spend around 2 months on supplier selection including in-depth research into material and component costs so that we have factual information to assist with negotiating the best deal for our clients.

Related articles: Find supplier or Manufacturer in China

For any enquries, please contact us

Go to top of page

Why does ChinaFind negotiate the price?

Our clients come to us because they know we have a transparent process including ensuring maximum savings without sacrificing quality.

This is core to ChinaFind and it is why we continue to grow and have very high client satisfaction.

Go to top of page

How to negotiate with Chinese factories?

Negotiation in the western world is usually direct and to the point, not so in China.

Chinese are absolute masters of negotiation, the only way to ensure a good deal is to be well prepared.

Knowing the cost of all inputs in production, knowing competitor pricing and answers to the various arguments why this factory’s pricing is higher than others and being prepared to spend a long time on negotiation (can be weeks or longer) including dinners and drinking are all necessary parts of the negotiation process in China.

Every day purchases such as buying groceries involve negotiation in China, so for Chinese negotiation is a way of life. Don’t expect to be better at negotiation through tricks and bluffs, it will always backfire, just be prepared – do your research, know pricing and know your target price.

Related articles: How to Negotiate in China

For any enquries, please contact us

Go to top of page


Quality control and assurance


I’ve personally had or have read about bad experiences importing from China, how can
ChinaFind prevent this from happening to me?

Are products made in China low quality?

We’ve all heard horror stories of product quality from China, from defective products to factories disappearing after payment and unfortunately many of these situations occur.

Be it a cultural or business ethic in China, many suppliers chase the quick deal over long term customer satisfaction.

Besides vanishing suppliers and other more obvious forms of fraud, if otherwise legitimate suppliers are not managed properly problems such as quality fade, counterfeiting, price increases and component or full production outsourcing (to suppliers you would reject) can occur.

The challenge then is to find the legitimate suppliers and then select the best one for each individual project and then manage the entire production process right through to delivery.

At ChinaFind we have a lot of experience as a company and from our individual team members in doing exactly this and doing it in China.

We combine our Western practices with local know how to create a sourcing process with proven success.

Selecting the factory is only the beginning.

In your home country you could probably ask a factory to produce a product, sit back and wait for the finished item to arrive, worst case send it back for a return or refund upon if defective.

Not so in China even if it is possible to return or replace, the costs are often enormous so it is essential to manage production in such as way as to eliminate defects.

The only way to do this is by actually going to the factory.

ChinaFind is based in China, Western management are on site in China and so we have the unique ability to carry out inspections to Western standards, fully understanding client needs and able to communicate with both factory and client to ensure a positive outcome for all.

Good Chinese factories want to make quality products, they want return business they simply need assistance from experienced companies such as ChinaFind to ensure that clients requirements are met.

Related articles: How to Manage Quality Assurance and Quality Control in China

For any enquries, please contact us

Go to top of page


Logistics and Shipping


Does ChinaFind handle shipping?

ChinaFind handles shipping from China to your local port for you including all paperwork on China side and couriering original documents to you or your preferred customs broker.

We work with a number of partner logistics companies which specialise in various regions.

Alternatively we can also offer DDU or DDP (duty unpaid or duty paid) services to major shipping destinations on request.

Related articles: How to Arrange China Customs Brokerage and Freight Shipping From China

Go to top of page

What are my responsibilities for receiving the shipment?

Depending on the service selected, you may need to handle customs clearance in your country.

We recommend this as best practice as it allows us to control every aspect of the shipping process up to port ensuring we have control over timing.

Local customs brokers will often have a better understanding of local procedures than we do, particularly in countries with changing or complicated customs controls.

To countries such as Australia and North America where we are shipping high volume we can offer DDU or DDP services and often in other countries we can recommend local services we have worked with before.

After we have overseen the loading of the container at the warehouse and cleared customs we will ask you, or your customs broker to confirm various documents including the Bill of Lading (B/L).

These must be confirmed quickly so that we have time to courier the original documents to you.

Payment for the shipping to the shipping carrier will be after you have confirmed the B/L and should also be transferred on time.

Related articles: How to Arrange China Customs Brokerage and Freight Shipping From China

For any enquries, please contact us

Go to top of page


Visiting China


Is it necessary to visit the supplier in China?

While it isn’t strictly necessary, if time and costs permit we highly recommend visiting China.

China is a wonderful exciting place and we welcome you to visit.

We have a completely transparent sourcing process, you are able to talk to suppliers and that includes visiting them.

Go to top of page

Can ChinaFind assist with my China factory visit?

We can assist you with travel arrangements, organising letters of introduction from factories as well as accompany you to factories.

If you need us to assist with anything during your visit such as price or contract negotiation please let us know in advance.

Related articles: How to Negotiate in China, How to Find a Manufacturer in China, How to Verify and Check China Company

For any enquries, please contact us

Go to top of page 

Copyright © 2013 ChinaFind. All Rights Reserved.