Do you know the basic purchasing process through Alibaba for importing from China?
Hello. Greetings from 8282 Korea-China Trade. (1688 purchasing agency, China purchasing agency, Alibaba purchasing agency)
In recent years, the market for smart stores, Coupang, and other open-market platforms has been steadily growing, becoming a significant market size that cannot be ignored. While early business owners have established their positions to some extent, new entrants entering as the market expands face increasingly fierce competition. Particularly for everyday items, where the barriers to entry are relatively low compared to other products, the competitive pricing has intensified to the point where even minimal margins are difficult to maintain.
For such items, sourcing from 1688 rather than Taobao or Alibaba can be a competitive advantage. 1688, a wholesale site focused on domestic trade in China, offers lower unit prices compared to other platforms with good accessibility. Moreover, it provides a wide range of products and does not require high minimum order quantities, making it suitable for sourcing by small business owners.
Those items can gain competitive advantage by sourcing from 1688 rather than Taobao or Alibaba. 1688, a wholesale site focused on domestic trade in China, offers competitive pricing compared to other platforms, along with a diverse range of products and low minimum order quantities, making it suitable for small business owners to source from. (1688 purchasing agency, China purchasing agency, Alibaba purchasing agency, 8282 Han-China Trade)
However, due to the difficulty of overseas payments, direct procurement isn't easy, and it's essential to rely on a systematic purchasing agency for smooth operations. Regardless of delegation, understanding basic concepts such as customs clearance for business operators, purchasing procedures, costs, shipping times, and understanding the basic concepts of the costs, routes, and dates of goods entry is crucial for conducting business. Understanding these concepts will help reduce risks and enable you to consider alternative solutions in case of issues. Today, let's explore the process of importing from China.
Customs clearance procedures are influenced by trade regulations and customs laws overseen by trade officials. When foreign investors provide capital goods as physical contributions, they must complete the import customs clearance process and obtain confirmation of the completion of the physical contribution from the customs commissioner. There are four types of customs clearance: business operator clearance, general clearance, simplified clearance, and list clearance, each with distinct characteristics.
General clearance involves directly verifying documents submitted to customs for goods that do not fall under list clearance items or meet the standard value. Simplified clearance falls within the same category as general clearance, but with simplified procedures when goods are declared in advance as qualifying for general clearance. This streamlined process not only ensures faster processing but also typically incurs lower customs clearance fees than standard clearance.
List clearance allows exemption from value-added tax (VAT) when submitting a list to customs directors for goods valued at $150 or less intended for personal use. This method is advantageous for its straightforward procedures and VAT exemption benefits, making it a useful option when purchasing items for personal use. (1688 purchasing agency, China purchasing agency, Alibaba purchasing agency, 8282 Han-China Trade)
However, to qualify for list clearance, the total amount including local shipping costs, local taxes, and purchase price must not exceed $150. If it exceeds $150, it will be canceled and converted to general clearance. Moreover, it is clearly illegal to sell items imported through list clearance for commercial purposes rather than personal use. If caught, severe penalties such as business suspension or fines may be imposed, so caution is advised.
[2. Business Operator Clearance]List clearance, general clearance, and simplified clearance are classified under individual clearance codes. However, business operator clearance differs in purpose as it is intended for resale to others. (1688 purchasing agency, China purchasing agency, Alibaba purchasing agency, 8282 Han-China Trade) Goods imported for profit-making purposes must always pay value-added tax (VAT) regardless of quantity, and separate customs clearance fees are also charged.
Products check here imported through business operator clearance undergo the most rigorous customs procedures as they are intended for distribution to Korean consumers after completing clearance. Additionally, as mentioned earlier, additional costs such as origin proof certification may be incurred. Please ensure a meticulous verification of the Chinese import procedures to conduct stable purchases without any disadvantages.