Import Products from China to Australia Like a Pro! in 9 Easy Steps with Willship

Summary

This video guide walks viewers through the process of importing goods from China to Australia, from sourcing products to managing shipping logistics. It covers key steps such as finding suppliers, requesting quotes, calculating landed costs, handling customs clearance, and organizing delivery. With practical advice on freight terms, taxes, and tariffs, the video emphasizes the importance of using trusted freight forwarders to ensure smooth importation. The guide aims to demystify the complexities of international shipping and help both new and experienced importers succeed in their business ventures.

Takeaways

• 😀 Sourcing your goods is the first step in importing. Use platforms like Alibaba, Made in China, AliExpress, or attend trade shows like the Canton Trade Fair to find suppliers.
• 😀 Always request a quote from your supplier that includes shipping terms. FOB (Free on Board) and EXW (Ex Works) are the recommended shipping terms for Australian importers.
• 😀 FOB means the supplier covers shipping to the departure port, while EXW requires the buyer to handle all shipping from the supplier's factory.
• 😀 Using a freight forwarder helps you control your shipment from the supplier to the destination, ensuring smooth shipping and avoiding issues with the supplier.
• 😀 Total Landed Cost (TLC) is the full cost of importing a product, including the cost of goods, freight, customs clearance, insurance, duties, and taxes.
• 😀 Australia's GST is 10% of the customs landed value, which includes the product cost, shipping, and applicable duties. However, most goods from China can be duty-free under the free trade agreement.
• 😀 For example, if the goods cost $10,000, with additional charges for freight, insurance, and customs, the total landed cost may be $12,450.
• 😀 Your landed cost per item is crucial for pricing your products effectively in Australia, ensuring your sale prices cover costs and allow for a profit.
• 😀 After placing an order with your supplier, there’s often a lead time of 7-30 days for manufacturing. Plan your schedule accordingly.
• 😀 The movement of goods involves coordinating with the supplier for shipping, handling all necessary paperwork, and tracking your goods from departure to arrival in Australia.
• 😀 Customs clearance is managed by in-house customs brokers who handle all documentation, such as the commercial invoice, packing list, bill of lading, and certificate of origin, ensuring smooth importation.

Q & A

What is the first step in the importing process from China to Australia?

The first step is sourcing your goods. You need to find a product before you can import. If you already have a product, you can skip this step. Otherwise, websites like Alibaba, Made-in-China, and AliExpress are good places to start, along with attending trade shows like the Canton Trade Fair.

What are the key shipping terms to consider when importing from China?

The main shipping terms to consider are X Works (EXW) and Free on Board (FOB). EXW means the seller's responsibility ends at their factory door, and you are responsible for everything beyond that. FOB means the supplier includes all shipping charges up to the departure port, making it easier for you to manage logistics.

What is the difference between EXW and FOB shipping terms?

EXW (Ex Works) means you, the buyer, are responsible for arranging all shipping, customs, and delivery after the goods leave the supplier’s factory. FOB (Free on Board) means the supplier is responsible for shipping costs up to the port of departure, and from there, you cover the rest of the shipping costs, including customs and delivery.

How do you calculate the landed cost of imported goods?

Landed cost includes all expenses from purchasing the goods to their delivery at your door. This includes the cost of goods sold, freight, customs clearance, delivery, insurance, and any applicable duties and taxes.

What are the duties and taxes involved when importing into Australia?

Most goods are duty-free due to the Australia-China Free Trade Agreement, but GST (Goods and Services Tax) of 10% is charged on the landed value. This value includes the price of the goods, shipping charges, and duties, if applicable.

How does the free trade agreement between Australia and China affect import duties?

The Australia-China Free Trade Agreement allows most goods to be imported duty-free, which helps reduce the costs associated with importing. However, GST at 10% still applies to the landed value of the goods.

What documents are required for customs clearance when importing goods into Australia?

Common documents required for customs clearance include the commercial invoice, packing list, bill of lading or airway bill, certificate of origin, and packing declaration. Additional documents may be needed depending on the type of goods being imported.

What is the role of a freight forwarder in the importing process?

A freight forwarder helps coordinate the logistics of getting your goods from the supplier in China to your destination in Australia. They manage shipping, customs clearance, and delivery, ensuring that everything goes smoothly and efficiently.

What should you do once your goods are ready to ship from China?

Once your goods are ready, you should work with your freight forwarder to organize the shipping. They will help with preparing the shipping documents, coordinating with the supplier, and managing the logistics to ensure smooth transit and customs clearance.

Why is it important to calculate the landed cost of goods before selling them in Australia?

It’s crucial to calculate the landed cost so you can set a selling price that covers all expenses, including shipping, customs, and taxes, and still make a profit. Knowing your total landed cost helps ensure your business remains profitable.