by Mike Bellamy in 'China Sourcing Information Center'
I asked about an item from eastXXXX-china.com. I wanted to know if pricing was in US dollars and was told yes. Next I asked about freight to the US. I was given a price for 1 item and was told if I ordered more than 2, freight was free to the US. How do I get it after it arrives in the US? I assume I should pick up the shipment on the shipping docks in Los Angeles, CA, but does it have to go through some import/export company first? If so, what kinds of fees are incorporated and what kind of import tax would I have to pay? Will it be percentage based or weight based etc.?
I had a chance to review your notes and the website of the seller. I hope I am wrong, but my gut tells me you may be about to fall victim to a common scam.
The following red flags lead me to suspect the supplier is not legit:
Run away my friend! Run!
I’m from a small town in the USA where we tend to assume the best about people until proven otherwise, but maybe I have been in China too long (15 years!) so I’m pretty jaded and tend to assume the worst now when sourcing. Before you make a payment to this company or any other company in China (regardless if the ownership is Chinese, American or something else), consider doing some due diligence to confirm the company really exists. I would be happy to introduce providers of this service. But if you want a quick, down and dirty, free way to expose a scam, just ask them the following:
a) Can you have a 3rd party inspect the goods before it ships and before any payment is made?
b) Can they put you in touch with some other clients to get some references?
I bet they will dance around these questions and not give you a clear answer.
Having said all that above, if this supplier turns out to be legit, please let me know. But if they have already scammed you by the time you get this email, then I have two ideas
On the off chance that this supplier proves to be legit, let me now answer your questions about logistics.
The website of the supplier says they can arrange door-to-door shipping, but it sounds like they are not very clear to you about the process (another red flag). Specifically, you asked:
Next how do I get it after it gets to the US? I assume pick up on ship docks in Los Angeles, CA, but does it have to go thru some import export company first? If so, what kinds of fees are incorporated and what kind of import tax would I have to pay? Will it be percentage based or weight based etc.?
It is possible for the seller to arrange door-to-door including all taxes and import duties and you would not have to engage any 3rd party. But most sellers in China don’t provide that level of service and leave it to the buyer to clear inbound customs in the USA and arrange final delivery from port to your door. A legit supplier would give you a quotation which is very clear about the incoterms and payment terms so you would know all the details about how it ships and who pays for the logistics. (Check out this blog post to learn more: Tips from a Chinese lawyer about incoterms”). If the contract (I bet they didn’t even give you a formal quote let alone a contract…another red flag) with your supplier leaves the US custom clearance up to you, then you would be wise to engage the services of a customs broker or freight forwarder. Without more details on your product I can’t tell you the import tax that would be applicable, but the freight forwarder certainly would be able to find out.
Sorry for the long email, but I am passionate about helping other westerners avoid pitfalls in China and wanted to give you a full answer to your questions.
Wishing you successful China sourcing!
Answer written by Mike Bellamy, an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center. Mike is also the author of "The Essential Reference Guide to China Sourcing" and founder of PassageMaker Sourcing Solutions.