How to Import Gifts from China

There are many factors to consider when importing gifts from China.

While cost is a key issue, you will have to think about the customs, logistics, and people to help you move the goods from China to your country.

Importing from China presents many fantastic opportunities for buyers and sellers.

Unfortunately, it is a hard task for beginners. The process can be confusing, complex, and expensive.

Long transit times, regulatory fees, fluctuating delivery, and unexpected delays are known to erase expected gains.

Here are the important things to keep in mind when choosing a promotional gift from a Chinese manufacturer.

Design

After identifying several custom gift suppliers, you will have to discuss the design.

You can communicate your ideas through reference photos, instructions, or sketches.

If they do not have in-house designers, you can hire a freelancer for the designer work.

You can also hire a local designer and work with them to come up with custom molds or prototypes.

You save more than you would if you chose the handicrafts gifts manufacturer route.

Sample

Product samples are another important thing to consider when importing wholesale gifts from China.

You will have to see and feel a product before allowing the gift manufacturer to start mass production.

Moreover, product samples will also help you test the supplier’s reliability.

Samples also allow you to feel and test the design of your products. You have to be sure that the overall quality and functionality of the products are as expected.

Further, the gifts for suppliers have to prove that they can deliver quality samples. Pay close attention to the function, feel, performance, and packaging of the gift. It is also important you have two or three people check the sample, just in case you missed any details.

If the products require mail-order packaging, the samples should be in the mail-order packaging that the manufacturer would use on your orders.

Remember to perform drop tests on each product to ensure that the packaging is strong.

Sturdy packaging will withstand any impacts associated with transportation.

The drop test will also help you identify any potential problems.

If the manufacturer cannot match your requirements, they are not a good choice.

MOQ

The Minimum Order Quantity (MOQ) is the lowest number of wholesale gifts you can order from a manufacturer.

If you cannot reach the MOQ requirement, the manufacturer may not start production. Manufacturers can set an MOQ per order, per material, product, or color.

A quick example, if your gifts manufacturer sets the MOQ as 500 pieces, then you will have to order over 500 pieces so that they can accept your order.

The gift suppliers mostly specify the MOQ on the Alibaba page or their website.

You can also contact them to know the MOQ requirements.

Keep in mind that some factors can affect the MOQ.

Most China manufacturers operate on a razor-thin profit margin. The profit margin can be as low as 5 percent.

For that reason, they have to produce in large quantities to break even.

Further, they do not keep stock of material. They have to buy them after you place your order.

So, a high MOQ allows them to satisfy the MOQ of their suppliers

Price

You have to search for wholesale gift suppliers that can offer high-quality products at a lower price.

While China manufacturers have very thin profit margins, they will be willing to give you discounts if you are a good buyer.

That means there will be no need to switch manufacturers. Manufacturers also want to keep you cooperative for a long time.

Compare various gift suppliers based on their pricing, material, MOQs, lead times, packaging, and other important factors.

Use the details when negotiating prices and tell every manufacturer what their competitors offer.

If a gift manufacturer is offering high-quality products, better lead times, and lower prices, they might be a good choice.

Keep in mind that you will put yourself in a vulnerable position if you provide the price. Your key competitors may have negotiated for lower prices.

So, ask the manufacturer to provide their lowest price for different quantities such as 1,000, 5,000, or 10,000 units.

They might offer a lower price than what you expected.

Certificate

A gift manufacturer may not have considerable experience exporting products to Europe or the USA.

However, they might understand all your requirements. They will know the type of wholesale gifts you need, and they may provide the best quality.

Further, they will be willing to provide the documentation and information you need for verification.

Chinese manufacturers with many clients in the United States and European countries are more likely to fulfill your large orders.

You are unlikely to encounter any challenges related to overall service and quality when ordering from them.

After all, they want to maintain their reputation before global buyers.

When it comes to business credentials, you have to ask for specific documents from them. Some manufacturers may give you fake documents, so be ready to check for authenticity. Here are the main documents to ask for.

• A copy of the Business License

This is the license containing an 18-digit license number. It confirms that the business is legally registered in China

• A Copy of the Bank Account Certificate

This certificate ensures that the manufacturer has a business account. Avoid those with offshore or personal accounts.

• ISO 9001 Certificate

This certificate ensures that the manufacturer has put the right management systems in place. It also shows that the systems meet the requirements of international standards.

• Foreign Trade Registration Certificate

Every manufacturer engaging in import/export business should have a foreign trade registration certificate. The certificate ensures that the manufacturer will not rely on trading companies to fulfill your orders.

• Custom Registration Certificate

China Customs issues the custom registration certificate to exporters and importers. It is important for manufacturers who have to make customs declarations.

• Factory Test Certificate

Test reports prove that gift suppliers can produce the products you need.

Only 10 percent of manufacturers in China can provide test reports.

The manufacturer should provide more than two documents from the above list.

Each document should have the same name on the proforma invoices or email signatures.

Remember to check the validity of every certificate.

Trade Terms

After finding the gift bag suppliers, you will have to account for the importation costs and the delivery time.

Many people from Canada, the United States, Europe, and Australia imports from China.

Here are the key trade terms you have to understand.

• EXW

Ex Works or EXW refers to an international trade agreement.

This type of agreement requires the supplier to have the goods ready for pickup at their business place.

The buyer will be responsible for all liabilities and shipment costs after the goods leave the production place.

So, Ex Works helps you know the type of shipping costs to expect.

You will also be in control during the shipping period.

• FOB

Free on Board (FOB) is another trade agreement.

It demonstrates whether the seller or buyer has liability for the goods damaged during transit.

FOB shipping point demonstrates that the buyer is responsible for any damages.

On the other hand, FOB destination implies that the seller will be liable for losses arising before the buyer receives the goods.

FOB is common with non-containerized sea freight.

• CIF

Cost, Insurance, and Freight (CIF) is another important trade term that requires China gift items suppliers to ensure the safe shipment of goods by sea.

It also requires them to provide the buyers with all relevant documents.

EU countries rely on the CIF value to calculate the import duty.

Delivery time

The delivery time can range from a few days to several months.

It highly depends on the amount of money you are willing to spend and the transportation method you select for your wholesale gifts.

Sea shipping takes the longest time, but it is the most cost-effective.

It will take you around over one to import goods from China to the USA and Western Europe.

Airfreight is the fastest method. It will take a few days to receive your wholesale gifts from any part of China to the USA.

However, the speed comes at a higher cost. Airfreight is around 5 times more expensive than sea freight. Express airfreight will take around 3-4 days, while economy airfreight will take between 7 and 12 days. Economy airfreight will cost you a lesser amount than express airfreight.

It is, therefore, a good choice if you are willing to wait for more days.