ALL YOU NEED TO KNOW TO IMPORT FROM CHINA TO AUSTRALIA

The mechanism of import and export has brought the world much closer.   Every country is unique and possesses specific resources and skills.  It not only exposes the home country to the international market, but also is an important element which largely contributes to growth in national economic.   Import and export plays a crucial role in robust development of a nation.   Furthermore, it helps the consumers enjoy the products of different countries in their home land.   One such dependable importer-exporter is China. To import from china is now a common practice for lots of companies in the developed part out the worlds when the company outsourcing manufacturing to China, where china manufacturing has a significant advantage in terms of labor cost compared to that of their own country. With an experienced china sourcing company being your manufacturing consultant, you can save up lots of cost by outsourcing to china with private label manufacturers who provides OEM services making your own product.

It is needless to say that China happens to be one of the biggest wholesale markets amongst all the countries in this world.  Moreover, it is a known fact that China also happens to be the biggest manufacturer in the world.  This has been made possible ever since China determined to do business with various countries overseas.  To accomplish this mission, the government of China has made efforts to improve infrastructure, provide subsidies, and encouraged import from China to Australia and other countries.  This led China to become the leading trading nation in 2012 when total imports and exports touched $3.87 trillion much beyond United States.  China established itself as the largest exporter of good to various countries in the world.

China-Australia relations

China is the fifth largest supplier of imported goods to Australia which makes up approximately 25 per cent of Australia’s manufactured imports.  Goods imported from China to Australia comprise of television, toys, games, sporting goods, communications equipment, clothing, computers, furniture, and bed-wares In fact, Australia is China’s top tenth trading partner.  Australia and China’s trading relationship is strengthening with import from China to Australia.

Important point about how to outsource manufacturing to China

In spite of innumerable benefits of outsourcing manufacturing to China, businessmen are confused about how to execute this process smoothly without any obstacles.  Here are some pointers that will guide Australian business operators to outsource manufacturing to China.

Appoint a Local Agent in China

Australia and China are situated miles apart across the Pacific Ocean.  It would not be feasible to trade efficiently across the ocean.  Travelling frequently will entail unnecessary expense.  Thus, appointing an executive to handle the trade on your behalf is the most practical solution.  To manage import-export transaction, negotiation, agreement, etc. your agent will represent you.  Thus, you must recruit a local executive who is educated, proficient in Chinese language, has sufficient experience in the same field, and possesses efficient marketing skills.

Select a Manufacturer in China

The next step is to find a manufacturer in China who is dependable and provides quality products.  This can be done through a reliable source known to you in China.  However, in absence of a reliable source, you can scan through business magazines, websites, the latest update of China’s economic review, international trade fairs, and shows to find the most suitable manufacture who can import from China to Australia.

Compliance with Australian Product Standards

Your basis of selection of a manufacturer in China should be in compliance with Australian product standards.  After shortlisting your manufacturer, you should demand the documents of compliance with Australian standards and regulations from your supplier.  Not all suppliers will replicate.  You simply cannot compromise on the quality of the product you import from China to Australia.  This will enable you to strike out the supplier you do not want as your manufacturer.  It is challenging to procure EU and US compliance documents from Chinese suppliers.

Well-versed with Importing Law

To begin with, you must be fully aware of the import law.  You must possess all the necessary documents such as import licenses and permit.  In case, you need explicit information about import rules laid down by the government, you must read Department of Immigration and Border Protection.  There is strict prohibition on importing of animals, plants, and other products from China.

Labeling

After your selection of your manufacturer who is in compliance with Australian Product Standards, you need to instruct them about the labeling of the products you want to import from China to Australia.  Your manufacturer may not be familiar with the labeling requirements of Australian market.  In most cases, Australian companies provide their Chinese suppliers with artwork and labeling files.

Types of goods that you can import from China to Australia

Moreover, you need to identify the kind of good you can import from China to Australia. Then you can do market research, ask relevant questions to your existing customers, and also make sure to explore the trends in Australia’s domestic market.

Here are some tips and hints about the kind of goods that can be imported from China to Australia.

• It is advisable to avoid food items as well as perishables. The reason is that it can get very expensive to import perishable food items as you need to use specialized containers. Moreover, Australia also has very strict rules and regulations on importing the produce.
• It is advisable to import the products that are widely available in the market nowadays. The reason is that these types of products are usually purchased by major importers and you will not be able to match them with prices of these objects.

• You should source your items that should be imported from China to Australia by basing them on your potential market. Look for what your clients are actually seeking and then source products from China to Australia. It is no use importing products from China and then trying to build a market for them.

• Make sure to understand your pricings and margins and importing can actually make your importing thinner. Pay attention to get an understanding of all your costs included both fixed and variable. This will give you an idea what to include in your pricing strategy and to gain desirable profits.

Various forms of Taxes

Goods and Service Tax (GST)

In spite of having GST registered company in Australia, goods and services taxes are applicable on imported products to Australia.  Any Australian company will be liable to pay 10 % GST on the total of bill of customs value (FOB price), customs duty, shipping and insurance, i.e.,

10 % x (FOB Price + Customs Duty + Shipping to Australia + Shipping Insurance)

Customs Duties

Different products have different customs duties levied ranging from 0 % to 10%.  Usually, 5% of custom duty is levied upon custom value of the products import from China to Australia, i.e,

Customs Duty = (Percentage of duty x Customs Value)

Import Processing Charge

The import processing charge is the cost of services rendered in reference to cargo reporting and import entry processing.  It is charged on the fixed cost of the product

Understand Chinese Culture and Custom

China is rich in its culture and heritage which also reflects its business ethics.  They respect and follow Chinese cultural norms and customs religiously.  In order to have a strong relationship with your manufacturer you must know the basic norms to win their heart.  This will enable you to establish a long term trading relations with your Chinese counterparts.

The Right Consultant

After, you have clarity about how to outsource manufacturing to china and sourcing products from china, it is important that secure a consultant who is trustworthy and guides you through every step when you import from China to Australia.

Why CNSourceLink?

When you plan to import from China to Australia, you need to link yourself with the most experienced partner who can guide you to do business in China.  You require a local agent who is not only well-versed with Chinese business customs but at the same time, aware of the current rules and regulations pertaining to import from China to Australia.   Our import-export company is based in California, U.S.A. and China which helps the importing country immensely to import products from China.  We offer premium service in outsourcing manufacturing products from China to Australia.  Apart from that we outsource whole production line to the factories in China.  We render the following services to our Australian counterparts

Help you find your Manufacturer

Since Chinese manufacturers may be new to you, you would not be able to distinguish between authentic suppliers and fraud suppliers.  Since we are local and deal in this area, we are fully aware which manufacturers are reliable and meet the Australian product safety standards. Our developed and reliable R & D team investigates the manufacturer chosen for you so as to rule out any fraud.  You can depend upon us for risk-free import and product safety.

In Compliance with the Law

We possess all the necessary information pertaining to the current import-export law laid down by the government of China as well as Australian government.  We get necessary documentation as per the rules and regulations of import from China to Australia.  We verify the authenticity of the import permit and license.  You would find that all our paper work is in order.

So, contact CNSourceLink and get all the necessary assistance for importing products from China to Australia and that too without many efforts on your part.