Do you want to purchase Chinese steel products? China is well-known for producing almost 50 per cent of world’s steel supply and therefore, if you have chosen this country as your next supplier of steel products then it is certainly a very wise decision.
However, before you go ahead with your imports of metal products from China, there are a few important things that you must consider so that your strategy of importing steel products from China will not fail.
To minimize any kind of business risks to import metal products from China it is very important that you must deliberate on certain important points as we have indicated in this post below.
- Obtain an import license in your own country
Geopolitics frequently causes import limitations from a particular country. Therefore, in order to import steel items into your country, you must first receive authorization from the government of your own country by applying for the required import license.
- Be aware of duty rates while importing from China
Duty rates are a variable that may change from time to time and hence before you decide to import steel-based products from China, you must find out the current duty rates in your country.
This will let you determine the variables to find landed cost of importing your steel products.
- Find a few potential suppliers in China
Now you should start searching for Chinese suppliers of steel products that you are looking for.
There are many sources to know about potential suppliers in China such as:
- Internet search
- Trade fairs
- Social media
- Visiting China
- Verify your suppliers that you have shortlisted
These days, many scammers are also finding a place in Alibaba, which may pretend them as a possible source of steel products that you need to be very careful.
So, you must verify the companies that you have shortlisted so far. You can also take the help of sourcing agents in China in finding a few reliable sources of steel products.
- Enter into a contract after selecting a Chinese supplier
After verifying your supplier in China, it is now time to verify your supplier first before you enter into a contract.
Discuss the payment terms in detail. Usually, a 30% payment is given as an advance while ordering.
The balance 70% payment is released after the supply has already been dispatched from the Chinese company.
- Monitor the production in China
After you have placed your order, you need to remain in regular touch with your Chinese supplier to monitor the progress of your production.
Also, it is important to monitor the quality of metal products from China either through your staff or by hiring any third party in China.
- Make payment when the supply is delivered
Once you have got a confirmation that your products have been despatched from China then according to your agreed terms and conditions, you must make the balance payments.
- Wait for custom clearance in your country
Depending on the form of transportation you have chosen, it will take some time for the supply to reach where you are.
You must designate a clearing agent in your country while waiting for customs officials to accept your things.
- Receive your items
It is crucial to perform an incoming examination of the products as soon as you receive them on your end to verify their quality and quantity.
It will really be a great decision to import metal products from China, which is now considered as a leading country in supplying steel products.
However, it is important that you must be cautious enough to not make any mistakes and follow the suggestions that has been offered above in this post.