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China Sourcing, Assembly and Packaging

How to buy from China and consolidate freight in HK

We have warehouse in Hong Kong (HK), and we would like to buy products in bulk quantities from china mainland to store in warehouse in (HK), do we need to have import/export license in HK and do custom paper works in HK?

 

Hong Kong is very open and you don’t need special licensing unless you are dealing in some prohibited products. The mainland, on the other hand, is far more complex. Two suggestions for you:

 

  1. Make sure you avoid purchasing under ExW incoterms from your Chinese suppliers. Under those terms, you would be responsible for local shipping, taxes and clearing customs out of China. Big headaches for most small and medium buyers. Purchase FOB port or CIF HK and you should be fine.

 

  1. Once the goods leave China, you will find it next to impossible to return to China if you discover defects after the goods are in HK. So have a solid quality assurance plan in place.

 

China trade goes one way

once the defects are loaded, don’t think you can return them later for replacements!

Related content:

 

How does one actually return defective product back to China?

www.SourcingServiceCenter.com if you wish to engage 3rd party support to help find and manage vendors (including QC).

 

Glad to help. Let me know how things work out for you.

 

Question answered by Mike Bellamy.

Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). Author of “The Essential Reference Guide to China Sourcing” and founder of PassageMaker Sourcing Solutions.




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