Conditions for Importing Goods from China, Especially for Business People
For those of you who frequently import goods from China for business purposes, it is very important to know the requirements for importing goods from China. A number of regulations have been determined by the government regarding the import of goods from the Bamboo Curtain country.
There are three conditions that must be met if you want to bring goods from China to Indonesia. Here's the review.
Process and Conditions for Importing Goods from China
- Calculating Prices
In the first step, you have to look for a goods shipper from China that has adapted to your needs. After finding a suitable supplier, send a request letter aiming to offer the goods you want to import. Then the supplier will send a reply in the form of an offer letter stating the price in their home currency or also United States dollars.
After the offer letter is received, calculate the import price but still consider several things related to the costs of the import process such as shipping costs from China to the country, customs duties, taxes and transportation. These are the conditions for importing goods from China to Indonesia that must be understood.
(Also read: 3 Types of Indonesian Passports and Their Uses or Functions)
- Opening a Letter of Credit Payment Method
The payment method that has been used to carry out transactions on an international scale is Letter of Credit (L/C) especially for export and import transactions. If you have agreed to the offer letter sent by the supplier, send a letter ordering the goods. Then the import sales and purchase contract must be signed.
One of the conditions for importing goods from China also requires you to make an application to open an L/C to a correspondent bank in China. However, there are several disadvantages of L/C that must be understood.
The first is that you have to pay for administration. The second is that it takes quite a long time to wait for the money to be disbursed considering several letters that have to be processed. Third, you will not get a guarantee that the goods sent will match what has been ordered. This happens because the bank does not have an interest in the goods but in the documents.
Therefore, the best way to import goods from China is to use a payment method using software. One of the weaknesses that usually occurs when making payments abroad is looking for the best rate.
But by using software, you can find the cheapest transfer fees. Sending goods from abroad to Indonesia using software means you don't have to pay any other costs but a flat fee.
- Receive and Hand Over Goods
After receiving the L/C, the next condition for importing goods from China into the country is that the technical delivery of goods must be prepared by the supplier, including the agreed means of transportation. There are several options such as flights or cruises. Then the transportation agent will receive the goods in the destination country.
Then the supplier will pay via the correspondent bank to redeem the shipping documents. The document will then be sent to the foreign exchange bank in the destination country. The original goods delivery documents will be sent to the importer after payment to the foreign exchange bank.
Importers must complete delivery orders to the transport agent and import duties through customs by asking for assistance from the company responsible for customs matters.
After knowing the requirements for importing goods from China, it's time to look for a trusted and safe expedition service until the goods reach their destination. Repack ID is the right choice of expedition service for those of you who want to send goods overseas.
