Finding reliable suppliers, planning production, and understanding import costs are key to making profitable business deals
Production Lead Times in China
One of the things to consider for import profitability is production lead times, especially when intending to market seasonal goods like clothing. In this sense, import planning must begin at least six months in advance to ensure timely arrival for customers. If all details are not controlled well in advance, the operation could fail. No one wants swimsuits in winter. The same lead times must be considered for school uniforms, Christmas lights, outdoor furniture, etc.
When importing a custom-made product (OEM), the time needed for its design must be calculated, which involves sending and receiving samples until the final product, labels, and packaging are approved. Once the design is approved, a couple of months will be necessary for production. The time required for transportation, which can take about a month, should not be overlooked.
The issue of suppliers is also delicate if you do not have the help of an import management and outsourcing company like Bull Importer. Finding a supplier through the internet and having a few conversations with them does not guarantee that they are reliable. Verification work is necessary to ensure the information on their website is accurate.
Once it is clear which supplier will handle the production, the price and minimum order quantities (MOQ) must be negotiated to make the operation profitable for both parties.
During the production process, quality controls and inspections of the goods at the origin will be necessary to ensure compliance with the agreements made with the manufacturer.
Transport, Taxes, and Tariffs
Finally, you need to decide on the mode of transport and know the prices, tariffs, and taxes to be paid. There are several modes of transport and different price conditions governed by international Incoterms.
International trade operations are accompanied by transport documents issued by transport companies and completed by forwarders. The responsibility for managing and processing these transport documents depends on the agreed sales conditions (Incoterms).
Choosing the right option is crucial to achieve the highest possible profitability in the operation.
Import taxes and tariffs are calculated on the value of the imported goods plus the cost of importation (transport and insurance). Customs tariffs in Spain usually range from 0% to 17%. Additionally, VAT is added, which is calculated on the value of the goods plus international shipping costs, insurance, and tariffs.
Our Experience
Bull Importer handles all these operations for you and keeps you informed at all times. Our experience in the sector is your best ally throughout the process.
- We find the product that suits your needs at the best possible cost in China or any other country.
- Your operations are reflected in a single invoice, in euros, detailed and transparent. Thus, you avoid paying for each procedure and transaction separately, without worrying about currency exchange.
- We arrange liability insurance for the imported product to protect you against damage caused to third parties.
