Guide for Import Businesses about China Sourcing Process


e-commerce-shop-online-homepage-sale-concept copy.jpgE-commerce is booming with time. More and more businessman get to benefit from the e-procurement advantage. The whole world is dependent on e-commerce, which is why many businesses are looking for importing products from China. Many people are making large amounts of money. Although e-commerce has always been a rapidly expanding trend, the COVID epidemic has made it much more prevalent. 

China has recently risen to the top of the list of countries that produce consumer goods globally. The opportunity to buy and sell consumer products made in China will enable the business owner to make a handsome profit. The main reason for importing goods or producing materials made in China is affordability, but it's important to conduct research before pursuing the China sourcing process. Importing is a complicated strategy that requires relationship development and creative thinking. Failure to set up will result in delays, unclear deadlines, and a loss of revenue.

Why import from China? 


You can save a lot on items overseas sourcing from China, even after paying import taxes and the cost of manufacturing them elsewhere. The dealers make enormous profit margins from China's primary exports. China sourcing process is therefore economically optimal.



Chinese factories are cooperative because they ship goods all over the world. They don't require an MOQ minimum order quantity for manufacture. Additionally, products imported from China are produced in higher volumes and by professionals who meet industry standards.


The cost of labour in China does not appear to be as low as in other low- or middle-income countries. However, China has other advantages that you cannot replicate, like its infrastructure, supply chain for raw materials, and skilled manpower. Another intriguing aspect is that importing goods from China doesn't require travel to China. 

You can simply hire a sourcing agent that works as a bridge between the manufacturing company and the business client. Hiring a local sourcing agent also provides a lot of benefits. 

First, they understand the same language, which may work as a barrier between Chinese suppliers and western companies. 

Second, they are aware of Chinese laws which western companies may not be aware of. Following those laws is critical for a smooth business. 

Third, if there is any dispute between the supplier and customer, it is difficult to handle it from a different country, but a sourcing agent can handle it and complete all legalities and court proceedings while staying in China. 

Things to remember when importing from China 

Hence, to undergo a smooth China sourcing process, one should know all the important things that will make even a complicated process a smooth journey .

Identify what goods to import 

Finding a great product to sell is one of the most important aspects of your business. Do some research to find out what sells well, and even better if this is something you at least have some knowledge about. This way you'll feel confident and at ease while presenting your product. Determine the value at which you will fairly sell about the prices of purchasing. 

Do your research to determine what can be imported legally. Keep in mind that there are certain limitations on several products. Loss of product, penalties, and fines may follow, and illegal goods are either destroyed or detained.

Create a list of Chinese suppliers who can supply the product that you have chosen. Through trade websites like Alibaba and online forums, exporters can look for Chinese partners. Online sourcing directories are also available, or you can hire a professional sourcing agent.

Chinese sourcing company is also a more reliable option for a novice who is unfamiliar with the China sourcing process. This gives you access to vendors you might not otherwise know about and enables you to connect with reliable sources.

Ensure the product abides by all regulations 

When deciding whether to import a product, make sure that it will not be hindered by issues like not meeting your country’s safety standards, expensive customs fees, or carrier restrictions. A staggering variety of shipments of allegedly harmless goods are stopped daily by Customs from entering the country from China. Hence, make sure your product conforms with the labelling requirements and safety standards.

For example, in India 

India's national standards authority, the Bureau of Indian Standards (BIS), is in charge of upholding the quality and security of goods intended for domestic consumption. It applies to both domestically produced goods and imports. Its three main purposes are:

  • To establish universal Indian Standards of Quality for Agricultural and Factory-Made Goods. 

  • Test a product. 

  • To permit the use of the quality mark, also known as the Indian Standards Institute (ISI) Mark, to indicate that a product complies with BIS standards.

Under its scheme for product certification, the bureau enables the use of the ISI Mark. Although certification is generally optional, several product classes need it. When it comes to imports, these products fall under two certification programs:

  • CRS Compulsory Registration Scheme - It covers all products related to electronics and information technology like mobiles, smart watches, laptops, televisions, LED lights, etc.

  • FMCS Foreign Manufacturers Certification Scheme - mandates an ISI mark for the sale of several product categories in India. Cement, automobile tires, X-ray machines, chemicals, toys, and food items like milk powder, packaged water, etc.

In the United States, 

Technical standards and chemical requirements

  • Check out the regulations of organizations like CPSC, UL, and ASTM.

  • Consider the possibility of how your product, even when used improperly, could cause harm to a customer.

  • By purchasing an ASTM standard file that details technical requirements, you can determine whether the product design is compliant or not.

  • Include a clause in your contract stating that your goods must adhere to set criteria.

Labels - Simply convert your labels into .ai or .eps files and send them to your provider before production to ensure compliance.

Documents - Online stores sell templates for CPC, GCC, and other agency examination reports. They should be printed, signed, scanned, and stored for at least 10 years.

Lab test - Send samples to a CPSC-authorized compliance testing firm for testing, if applicable. You'll get evidence of compliance within a week.



Once a product has been created, the next step is to assign it a 10-digit tariff classification code. You can use this to determine the rate of duty for import. These numbers are frequently added to the cost of the goods and the delivery fees to determine how much you can charge your consumers and still make a profit.

Working on this estimate is crucial because you probably won't have a specific variety until you receive your first shipment. You can prevent losing clients or revenue by getting as close to the value as you can. Just be prepared to compare the actual price to the estimate when the main cargo arrives. Price changes are common due to unforeseen costs.

Place order and prepare shipment 

About 2 weeks before the order is ready for shipment, you should start managing your freight. You should start by looking for a freight forwarder. Whether you're shipping by air or sea, a freight forwarder or sourcing agent will get your goods to their destination. It is always better to compare many freight quotes to ensure you're getting the best pricing.

After choosing a price, ask the forwarder to email you a copy of the policy. You'll need it to support your claim. Additionally, you can ensure that your forwarder doesn't neglect to arrange insurance by doing this.

The minimum order requirements and shipping terms can differ from business to business. Most Chinese businesses would need an order of at least 10,000 units each. Chinese exporters frequently demand a 30% to 50% upfront deposit to start production. The balance is payable after delivery.

Incoterms from China 

Incoterms are another thing to keep in mind when engaging in the China sourcing process. The International Chamber of Commerce (ICC) created Incoterms as a set of commercial norms. Incoterms have to do with international commercial legislation. Incoterms are used in many corporate transactions as well as the procurement process. 

Both trade councils and international courts support the use of incoterms to make the sourcing process streamlined and easy. Incoterm regulations are made to describe the responsibilities, costs, and dangers involved in trading goods globally.


Making the right kind of payment to your provider is a key component of any trade. Recently, the Chinese government allowed appreciation in the value of the Yuan, RMB. This means that if you purchase RMB and pay your Chinese service provider with that RMB, you will be in a stronger negotiating position. Giving Chinese suppliers a stronger currency that they can also use back home is a gift. 

Despite higher costs and usually higher tensions with the West, China continues to be the world's factory. Despite having a reputation for producing low-quality goods, most goods from China continue to be of excellent quality. Although private label sellers’ competition has increased significantly over the past few years, there is still a great opportunity to build a complete and authentic business around importing from China. If you have any doubts, you can check the above-mentioned tips to consider before importing from China.

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