How to Start Importing From China, Vietnam Import Opportunities Conclusion

THE CHEAPEST WAY

Registering an account with DHL

DHL is one of the world’s largest courier service company with high network all over the world. The company has been operating for many years and known for efficient services which include: document, parcel and cargo delivery. Another reason I strongly recommend DHL is that like FEDEX, they deliver your goods to your office’s or shop’s doorsteps, pay customer charges and tax.

However, there are other delivery companies like APEX, UPS, EMS and FEDEX. Some of these delivery companies don’t deliver to your address, and even when you come to pick up your products you will have to confront custom official who also have offices right there.

Their charges are higher too, about 5% of the cost of goods. You may be tempted to falsify your price in other to pay less. But I encourage, better you don’t get into this kind of temptation as it is against business principles. DHL saves you these temptations, stress, but offer you the best and cheapest means to do that. Once you contact any DHL office in the city close to you, make enquiries and register an account with them. With your DHL account number DHL picks up product from any where in the world and delivers to your address, while you pay after delivery.

The goods are packaged by them before delivery for insurance cover. You also enjoy discount and benefits that are not accruable to an ordinary shipper.

Please check back very soon for the continuation of this article.

PROVEN WAYS YOU CAN MARKET YOUR GOODS

The goal of every importer is to make and increase sales of his goods. No matter how good, effective your goods are, if nobody buys it, it is as good as nothing.
To market your goods you must have strategies on how to generate customers. There are some I want to show you.

Before the technological revolution, the small retailer was limited to selling goods in a brick-and-mortar retail store in a strip mall, or at a swap meet. The more daring sold their merchandise through mail order catalogs. You can still make money using these approaches, but now, thanks to the internet, you have more options.

How about selling your imported merchandise on E-Bay? You’re Yahoo Store? On Craigslist? But don't forget about old-school approaches, how about selling thousands of your units using the late night television infomercial approach? Remember the old marketing adage; if you see the same, commercial play over and over again on TV, someone somewhere is making a ton of money!

Have you thought about making your own online retail store with shopping cart? These days you can get a full-fledged, secure E-commerce store with a powerful shopping cart capable of handling 1,000 or more items for as little as $30/ month! You can start with one site specializing in one category; let's say mobile phone accessories. Once you master it, you can duplicate that business model and open several more stores: Toys store, Portable Air Conditioners, Leather Bags… the list is endless! Now is a great time to start your importing venture.

The Chinese economy is rapidly morphing into a capitalistic model and the business climate for foreigners is as good as it has ever been.

E Business and E Commerce Management

Package Deals Can Win Import Duty Savings: Calculate Tariff Duty Opportunities for Imported Combo Deals

E Business and E Commerce Management

Exporters sometimes sell groups of different items as a package. Together, each package of items is considered a single imported package deal.

To calculate tariff duty for package deals, customs officials multiply the total dutiable value for a shipment by a single percentage rate. Package deals are subject to a single duty rate instead of separate percentages that would otherwise be assessed on the value of individual items shipped separately.

The sample scenarios below show how to calculate tariff duty for package deals where items have a different duty rate or one of the goods is duty free.

Steps to Calculate Tariff Duty Opportunities for Package Deals

If the tariff duty rate is the same for all items in a package, then there is only one rate to use. For example, combo deal of imported guitars (harmonized system code 9202.90.90.10) and banjos (code 9202.90.90.30) are both subject to a non-preferential tariff rate of 6%.

If the tariff duty treatment is different for separate components of a package, the following steps apply.

  1. Determine the combined dutiable value for all items in a package deal set.
  2. Establish values for each item in a package deal as if they were sold separately.
  3. Add the values for each tariff item sold separately.
  4. Calculate percentage portions that each individual item represents to the total in step 3.
  5. Apply each percentage to the dutiable value for package steps in step 1.
  6. Identify which item has the highest dutiable value portion.
  7. Apply the tariff rate percentage for the item identified in step 6 to the dutiable value for the entire shipment.

The above steps are applied in 2 tariff duty opportunities below.

Example of Import Duty Savings for Package Deals

Canada Border Services Agency (CBSA) imposes a 7.5% tariff duty on golf clubs (harmonized system code 9506.31.00.10) and 8% for golf balls (HS code 9506.32.90.00) imported from China. In this example, the Chinese exporter charges $50 for one golf club packaged with a dozen golf balls. CBSA valuates a price of $75 per golf club and $25 for a 12 pack of golf balls if sold separately.

  1. Dutiable value for a club and golf balls set is $50.
  2. Separate price for golf club is $75 and $25 for 12 golf balls.
  3. Total value for golf package deal is $100 if sold separately.
  4. Golf club and golf balls represent 75% and 25% of total separate pricing.
  5. Based on the actual shipment from China, golf club’s dutiable value is $37.50 (75% of $50) and $12.50 (25%).
  6. Since dutiable value for golf club is greater, its 7.5% tariff rate applies to the entire package deal shipment.
  7. Total duty payable for a single package deal amounts to $3.75 based on the lower tariff rate for golf clubs.

If the golf balls had a separate price that was higher than for a golf club, the tariff amount would have been $4 per packaged set

While $0.25 in import duty savings may seem modest, a shipment of 100,000 packaged sets from China represents a $25,000 savings. This is a significant reward from understanding tariff duty opportunities.

Package Deals with Duty Free Items

The price for a packaged set of a guitar plus a harmonica (HS code 9205.90.10.70) imported from Spain costs a total of $400. The harmonica is duty free; the imported guitar is subject to the 6% tariff duty. Customs will calculate tariff duty as if the guitar and harmonica were sold separately, and determines that the imported guitar would cost $400 and the mouth organ would be priced at $100.

In this scenario, the guitar represents 80% of the package deal if sold separately, while the harmonica is 20%. The guitar has the highest dutiable value ($320 to $80 for the harmonica). Therefore, the guitar’s tariff duty rate of 6% is applied to the shipment’s overall $400 dutiable value.

The importer has to pay $24 on the $400 shipment, even though the portion for the harmonica would be duty free if imported separately. A separate shipment of harmonicas would save $4.80 per package deal (6% of $80). For a shipment of 10,000 guitar-and-harmonica combo deals, that amounts to an extra $48,000 in potential import duty savings.

Import Duty Savings for Carrying Case Packages

A guitar sold in a leather carrying case (HS code 4202.11.00.00) is treated under the guitar’s tariff classification, even though the guitar’s tariff duty rate of 6% is much lower than the 11% duty charged on leather cases. Canada’s Customs Tariff lists this exception to the usual treatment of package deals.

If a guitar in a leather carrying case costs $300 when imported from Italy, this represents a $15 savings in tariff duties per imported guitar set. A shipment for 10,000 of these imported combo deals would cost an extra $150,000 in customs duties if the cases were imported separately from the guitars.

Tariff Duty Opportunities for Imported Package Deals

Depending on the size of the shipment, tariff duty opportunities can result in hundreds of thousands of dollars in import duty savings. Importers should calculate tariff duty for package deals as shown in this article, and then consult a reliable customs broker or local government customs office for more help.

US Crude Oil Import Statistics by State

US Crude Oil: Imports, 1980 – 2021 | CEIC Data

In his State of the Union Address on January 31, 2006, then-president George W. Bush spoke of America’s addiction to oil. His point was that the U.S. needed to develop cleaner, cheaper and more reliable alternative energy sources.

Partly due to lower oil prices and a slowing economy, overall U.S. imports of crude oil were US$188.5 billion in 2009. That amount is 13% lower than in 2006 and 45% less than in 2008.

The harmonized system tariff code for crude oil is 270900.

Top Oil Importing States by Amount

California, Texas and Illinois consumed about 23% of all crude oil imported into the U.S. last year.

Shown below are the top 10 states for importing crude oil in 2008.

 

  1. California … US$15.1 billion, down 51.4% from 2008
  2. Texas … $14.7 billion, down 40.1%
  3. Illinois … $14.2 billion, down 39.4%
  4. New Jersey … $6.7 billion, down 47.6%
  5. Pennsylvania … $5.7 billion, down 47%
  6. Louisiana … $5.2 billion, down 54.3%
  7. Kansas … $3.3 billion, up 4,150%
  8. Washington … $3.2 billion, down 41.9%
  9. Hawaii … $2.6 billion, down 36.6%
  10. Delaware … $1.5 billion, down 55.5%.

Among the top 12 oil importing U.S. states, only Kansas showed an increase in its addiction to foreign oil from levels in 2008. Crude oil imports into Kansas were up an astounding 4,150% in 2009.

States Where Oil is the Highest Percentage Import

Total amounts sometimes do not present a clear picture of a state’s dependency on foreign oil. Shown below are states where crude oil represents the highest percentage of overall imports.

  1. Montana … US$88 million (76.1% of state’s total imports)
  2. Wyoming … $99 million (69.2%)
  3. Louisiana … $5.2 billion (68.9%)
  4. Hawaii … $2.6 billion (67.4%)
  5. Mississippi … $414 million (53.4%)
  6. Texas … $14.7 billion (33%)
  7. Kansas … $3.3 billion (27.5%)
  8. Pennsylvania … $5.7 billion (22.5%
  9. Alaska … $250 million (20.1%)
  10. Illinois … $14.2 billion (16.5%).

Louisiana and Hawaii appear farther down the list of states in terms of the dollar value of imported oil. Yet, those 2 states are near the top of the list of jurisdictions where crude oil represents the highest percentage of overall imports.

Fastest Declining Oil Imports by State

The following top 10 states excelled at reducing the value of their foreign crude oil imports. Minnesota and Oklahoma made the greatest strides in cutting down their dependency on imported oil.

  1. Minnesota … US$1.1 billion, down 84.3% from 2008
  2. Oklahoma … $242 million, down 72.6%
  3. Delaware … $1.5 billion, down 55.5%
  4. Virginia … $404 million, down 54.8%
  5. Alabama … $1.3 billion, down 54.5%
  6. Louisiana … $5.2 billion, down 54.3%
  7. Wyoming … $99 million, down 53.5%
  8. California … $15.1 billion, down 51.4%
  9. New Jersey … $6.7 billion, down 47.6%
  10. Pennsylvania … $5.7 billion, down 47%.

So, is America still addicted to foreign oil? Certainly, states such as Montana, Wyoming, Louisiana, Hawaii and Mississippi have a high dependency on imported crude oil which accounts for over 50% of each state’s overall imports.

There did appear to be some improvements in number of states during 2009. Kansas was the biggest disappointment with a 4,150% increase in crude oil imports over 2008. Connecticut increased its crude oil imports by 643%.

It remains to be seen whether American has cured its foreign oil addiction, with alternative energy permanently replacing crude petroleum provided by international suppliers.