How to start exports to China
In connection with the fall of the ruble, many are thinking about how to start the export of Russian goods to China. The following tips will help novice businessmen to evaluate your idea from different perspectives and to prepare for possible difficulties.
1. Make sure that the Chinese market need your product
China is actively following categories of imports of goods. In brackets shown growth over the past 5 years.
Works of art and collectibles (+ 7.061%)
Cereals (+ 477%)
Dairy products, eggs, honey (+ 402%)
Sugar (+ 395%)
Meat and seafood (+ 278%)
Clothing (+ 209%)
Pets (+ 209%)
Coffee, tea, spices (+ 199%)
Precious stones and metals, coins (+ 180%)
Cotton (+ 179%)
Medications (+ 151%)
Alcoholic Beverages (+ 175%)
Cocoa (+ 173%)
Leather (+ 169%)
Products grind grain (+ 166%)
Clothes, custom and ethnic clothing (+ 163%)
Vehicles (+ 161%)
Natural and artificial fur (+ 159%)
Wood (+ 158%)
Dairy and cereal meal (+ 155%)
Oil (54%)
Other convenience foods (+ 150%)
(Site data ExportToChina.com)
To determine whether your product is suitable for sales in China, analyze the market for cultural characteristics, the presence of such goods and the possible competition.
2. Find out what rules your product is made in China
The procedure of importing goods into the country usually takes the buyer. However useful to understand how the process, and find out in advance whether your product in a particular design. Below is a list of resources that are often used by foreign exporters.
AQSIQ - for exporters of food and beverages
Before entering into a contract with a Chinese buyer, both parties must register in the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (General Administration of Quality Supervision, Inspection and Quarantine / 中华人民共和国 国家 质量 监督 检验 检疫 总局).
CCC - China compulsory certification
Some foreign goods sold in China must have the mark of quality CCC (China Compulsory Certificate). This applies to the majority of electrical and electronic devices, including their parts, motorized vehicles and spare parts, various means of health care, household cleaning products and children's toys. Experienced Chinese buyers can help you to obtain the CCC.
CFDA - Chinese management by the Food and Drug Administration
Cosmetics, medicines, medical devices and food supplements (dietary supplements) must be certified by the Chinese Office of the Food and Drug Administration (China Food and Drug Administration / 国家 食品 药品 监督 管理 总局). Again, competent distributors should help you pass the certification, if required.
CTD - customs duties and taxes
This resource contains information about Chinese customs tariffs and taxes levied on foreign goods, as well as detailed documentation requirements.
HS code for China
Look codes for your products here. http: //rtsit.rf/a103388-codes-china-garmonizirovannaya ..
3. Decide on the price of goods
Consider in detail cost structure. The price of goods shall consist of the items correctly installed. Your income is obliged to cover the costs of delivery of goods, documents and all possible taxes. Chinese buyers are sensitive to the fact that the import of goods into their country is worth the money, so immediately beneficial to set yourself a price to your cooperation and continued profitable.
4. Identify the best channels to maximize output to the Chinese market
There are several forms of doing legal business in China, and some of them require the establishment of the company. If you are just starting out in the field of exports to China, follow proven methods. You can start with the sale of goods directly to wholesale buyers / distributors or agents.
Avoid exclusive distributors in China!
China - a huge country, so work with a single wholesaler to limit the spread of your product, since such a network is usually covers only a few, and sometimes only one region. If you do decide to sign an agreement on exclusive distribution, make sure that it will act only in one-specified region. It will also help to avoid unpleasant consequences if your partner will promote goods properly.
5. Bring a contract with a buyer / distributor in accordance with the formal requirements
In the contract it is important to clearly set out what, when and how the purchaser will pay for the product, as well as how and when the provider will send the goods. Glossary of International Trade Terms (Incoterms) will help to clearly define the points of the contract related to logistics, insurance and other issues.
Typically contracts have the same structure regardless of the type of business. Key provisions of the contract for the export of goods shall include:
- Business description
- Terms of delivery
- The delivery / dispatch
- Packaging, marking and labeling
- Taxes, duties and taxes
- Prices
- Terms of payment / installment
- Trading Conditions
- Documents Required
6. Choose to send your goods to China
To choose the best way to send goods to China, consider the following factors: price, speed of delivery, security of goods in transit, the volume and weight of the load. Since this aspect includes decisions on how to pack, insure and inspect the goods, it is better to ask for help to the Russian or international companies.