You need to confirm the 10-digit tariff classification number of the product you wish to import correctly.
The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products.
The tariff classification number along with the Certificate of Origin is used to determine the rate of duty you must pay when importing.
You have to figure out the total landed cost according to trade terms (included in Incoterms) before you place an order with a supplier in China.
The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law.
3 major trade terms: FOB, CIF, and CFR
FOB, “Free On Board”, means the buyer is at risk and takes ownership of goods once the seller ships the goods.
CIF, “Cost, Insurance, and Freight” is an expense paid by a seller to cover the costs, insurance, and freight against the possibility of loss or damage to a buyer’s order while it is in transit to an export port named in the sales contract
CFR, “Cost and freight”, means the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain them from the carrier.
Transport Obligations, Costs and Risks
RED indicates seller’s
YELLOW indicates buyer’s
GREEN indicates mixed or shared