Save more on your freight while doing business in China

The sleeping giant has awakened and many industries have exerted an extra effort to form ties with it – China.

With economy growing at a rate of 7.7% last year, it seems the Government’s 12th Five-Year Plan is coming into place. It highlights these three main priorities:

• Sustainable growth
• Industrial upgrading
• Promotion of domestic consumption

Save more on your freight while doing business in China

World Bank shares its view about the Chinese economy

The expected decline of the Chinese economy in the years to come is the least of their worries. It has very little threat to the country, especially with it inching closer to the US economy year after year. Source: http://knoema.com/nwnfkne/world-gdp-ranking-2014-data-and-charts

GDP Growth of China in 2014

Why do business with China?

Given these facts there are many reasons why you should do business in China. Watch this video to learn more.

Save more on your freight while doing business in China

How do I start doing business in China?

The low cost products, competitive labor market and increased profit advertised by the Chinese economy is sufficient to convince industries to go ahead and do business in China. But how do you begin? How do you maximise this opportunity to your advantage?

Understanding the industry strength of China

The World Trade Organization (WTO) showed China as the number one (1st) exporting nation and the number two (2nd) importing nation in the world in terms of merchandise. With this in mind, businesses looking for a better cost alternative manufacturing solution would do better outsourcing their process to China.

However, how do you move your items to your customers? Wouldn’t this mean spending more on freight thus resulting to the same operational expense as when manufacturing products in Australia?

How to save on your freight expense when moving goods from China into Australia?

If you are not keen to the constantly changing freight rates, then you will most likely get slaughtered by over-priced logistics costs. This expert tips will provide you some skills that will give you better understanding on how you can maximise your import shipping scheme.

Shipping in big volumes vs small volumes?

Properly evaluate the volume of goods you need to ship regularly. Find a reliable freight forwarder to ship your goods from China into Australia cost effectively using any of these two methods: Full Container Load (FCL) and Less than Container Load (LCL).

Both options have their advantages and disadvantages, however planning your cargo accordingly will help you save heaps on your freight expense.

Identifying the required taxes, rates and add-on fees to be paid

Aside from carefully planning your shipments, identifying the required taxes you need to pay to import goods from China into Australia will add more to your savings. This checklist will help narrow down your tax queries:

Export Duties

Experts from Dezan Shira & Associates shares this information about export duties:

‘Export duties are only imposed on a few resource products and semi-manufactured goods. In 2013, China continues to levy temporary tariffs on exports including coal, crude oil, chemical fertilizers and iron alloy to conserve resources.’

Is there a customs duty payable on the product?

Duty rates and import taxes vary from product to product when importing it into Australia. It is best if you could check with your customs clearance expert to clarify the rate you need to pay on this.

Are there any restrictions on bringing this product to the Australia?

Firearms and weapons, pirated and counterfeit goods, non compliant gas and electrical goods, asbestos, tobacco and alcohol products may hold certain restrictions when imported into Australia. Visit the Australian Customs and Border Protection’s (ACBPS) website to learn more about this.

Other freight charge and rate questions worth identifying

• Are clearance document costs included in the freight charge?
• How much will it cost to pick up my cargo from the dock? warehouse?
• Is there an inland freight charge to get to from the wholesale warehouse to port?

Choosing the best logistics partner to move your goods from China into Australia

Hiring the services of a reliable and knowledgeable logistics and customs clearance expert will save you time, money and effort clearing and moving your goods from China into Australia. Freight Forwarder Quote Online Australia and Freight Forwarding has more than 20 years of industry experience shipping goods to and from Australia. Tell us your specific logistics and customs clearance requirement. Talk to us at 1300651233.

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