How to Import from China~costs calcultation

Please allow me introduce myself first. Andrew Zhao, a Chinese to the core. Because my major is business English~international business, so after my graduation I naturally become a internal clerk. My main job is to find customers overseas and sell our goods all over the world.


To be candid, I am not a success business man, but being is this field in years, I know something which may helps you guys to know how to import from China.


First of all, you should have a target, you should know what level goods you want, then you could do some research about the cost.


Regarding to the cost here is a list which may help(depend on Fob trade clause):

1. Fob Price of the good (Will open a new blog to tell all the trade clause)

About that price, you need to know is: this cost contains the goods value, and supplier need to send the goods to their nearest port in China. Also supplier need to pay for the Customs costs and local charge.


In one word, this price has contains any costs happens in China mainland.

2. Shipping cost, in order to get the shipping cost, you need to get the detailed packing info such packing size and gross weight from your aim supplier.


After you get that packing info, you will need to ask a quote from a logistic company for the internal shipping. Shipping cost usually calculate depend on the packing size.


Also, you could ask your supplier to help ask a quote from their shipping agent, but I suggest you choose your own forwarder.


3. Costs for the forwarder handling~destination cost. This cost is very complex, in one word, these are some names you do not even know what that mean, but forwarder will ask you to pay for. So before you start, clear the cost is very important.


As I mentioned this costs are very complex, there are many names and many items of costs, such as THC, Customs clearance, Delivery charges, handling charges, port security etc.


So when you ask quote from the forwarder, never forget to get a reference destination cost, before you make a decision.


4. Duty: Customs duties, GST and some other duties your government have ruled.

Different country have different duties and how much you may need to pay all depends on your government rules.


About this costs you could ask help from Customs of your port, or your local forwarder.


5. Your inland transportation cost

This cost is simple, just normal transportation cost.


6. Also there may comes to some storage cost

When the goods arrive to your place, you may need to put them in warehouse, so do not forget to calculate this cost.


7. Insurance~ not high but very important

Generally cost for insurance is very low, but most people may forget or they wanna save this tiny money. While I suggest never forget to buy insurance, that is guarantee for your money. After checking with the insurance company you will find that cost is really low.


There may some other costs I did not mentioned such as your business operation cost; ad etc.


Calculate all of these and compare with your current market price, if the profit is good then you could consider to do that business.


Ok, with these info you may know how to calculate your costs. Will open a new blog to explain all the trade clause.



6 thoughts on “How to Import from China~costs calcultation”

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