China blueprint top ten tips for importers

Top Ten Tips to Importing from China

Presented by Lisa Goodhand China Blueprint Consultants

Australia’s leading Import Service Provider!

China Blueprint Consultants Pty Ltd (c) 2013

Who are we?

We are an Australian company

Our import services include Finding you a qualified manufacturer

Managing your imports

Coordinating sample making

Inspecting goods

Checking factories

Solving supplier problems

Negotiating your price

Managing contractual & logistical challenges

We specialise in China


If you want to import from China…

1. Have a clear objective

2. Give yourself a reasonable timeframe

3. Understand the benefits & challenges

4. Communicate clearly

5. Be cautious of making assumptions

6. Have a back up plan

7. Be realistic about your goals

8. Understand who you are talking to

9. Protect your intellectual property

10. Do your due diligence

You will need to…


No. 1: Have a clear objective

Plan your import project before you start sending money

• Why do you want to import?

• Is importing the best option for you?

• Is there a demand for your products?

• Who are your current competitors?

• What are your local market requirements?

• What are the advantages of importing?


No. 2: Don’t be in a rush

Take your time to learn about the import process, who is involved and what its really going to cost you…

• Source a

supplier/manufacturer

• Check their credentials

• Order & confirm samples

• Prepare your own contracts

• Manage the risks

• Place your order

• Book an inspection

• Coordinate logistics

Next Steps…


Import order process

How much will this cost?

Your shipper can now collect the

goods and deliver them to you

Shipping

Once the goods are complete, inspect them

before they leave China

Inspection

Place your order ensuring the

factory clearly understands what

you want

Order

Put your confidentiality

and supply contracts in place

before you send your companies

IP

Contracts

Get a sample, make any changes

and have one ready for

inspection

Sampling

Check their credentials,

ensure they are a factory and that

they can actually make your goods

Due Diligence

Find a supplier that can make

your goods

Research


No. 3: Understand the benefits & disadvantages

After you do your research do a cost benefit analysis.

Is it worth it?

• What will my final profit margin be?• How long before I get paid? • How much could I buy for from home?

• Upfront purchase cost• Your time & effort• Logistics, taxes & tariffs• Insurance & due diligence


No. 4: Communicate Clearly

• Be specific about: Your design details The standards you require Changes you agree to Your trade terms

We regularly see problems where communications have not been clear, instructions are not formatted and language is a barrier…


No. 5: Assumptions beware!

Don’t make assumptions based on what you already know about business and the way it ‘should’ operate.

Be conscious of China’s: Different laws Different trade practices Different language and culture

A Chinese Legal Contract

If its too good to be true, its probably too good to be true!


No. 6: Have a back up plan

What if…• The factory doesn’t meet the deadline?• The quality is not good or the products are faulty?• It costs more than expected?• The factory takes the money but does not produce the goods?

Plan for the what if’s, they will cost you timemoney and could affect your reputation…


No. 7: Be realistic

Many new importers forget simple issues such as • How long it all takes• Not all factories want to make small quantities• Not all factories can produce to Australian standards• Whilst some factories may be optimistic about their capabilities,

they may not have the capabilities.

Sometimes, importing from China will not be thebest option…


No. 8: Understand who you are talking to

Factory vs Agent• Not all factories are set up for export• Agents in China are abundant• There are also many fraudulent operators

Just because someone can speak good English, don’t assume they are the best person to be talking to.


No. 9: Protect your intellectual property

Don’t let your manufacturer become your competitorConsider:• Contracts • Black box assembly• Partial manufacture• OEM manufacture• China Trademarks & Patents

Its worthwhile protecting your IP,This must be considered at the beginning of your project.


No. 10: Due Diligence

What options do you have available to you?• Factory inspection• Business due diligence• In-production inspection • Final article inspection • Product & material testing • On the ground support

This is a cost of doing business in China – factor it in!


People you will need to talk to

Importers• Import consultants

• Freight forwarder

• Insurance company

• Australian Customs

• Quarantine & Inspection

• Standards Australia

• Lawyers (Chinese experienced)


The Next Step

• Patience, understanding, due diligence and attention to detail

• We can assist you at any stage of your import. Contact us to find out how you can import from China and become an import success story.

“you may be the expert on your product, but you will need help navigating the China market”

China Blueprint Pty Ltd905/250 Pitt Street, Sydney

Phone (02) 9267 2933


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China blueprint top ten tips for importers