Shipping Terms: CIF vs. FOB

The International Chamber of Commerce coined INCOTERMS in 1936, which was revised in 2010.  Incoterms are simply international commerce terms. There are 13 incoterms and each one represents an agreement that governs the shipping responsibilities of sellers and buyers within international trade. This system was put in place so as to facilitate orderly international trade through contract models that cross language barriers.

CIF and FOB are two of the most commonly used incoterm agreements. Each defines which party is responsible for the freight charges, what insurance is provided (or not) and who is responsible for the goods while in transit. The agreement also establishes the point where the buyer assumes responsibility.

FOB – Free On Board
IE: FOB China

The buyer makes arrangements for all freight and port fees from the shipping point in China to their door. Once the goods have been picked up in China, all responsibility for the shipment rests with the buyer’s shipping company.

CIF – Cost, Insurance and Freight

The seller’s shipping company holds responsibility for the cost of goods until it arrives at the customs port nearest the buyer. Minimum insurance and all freight to the port of entry are included in the prices quoted to the buyer. The buyer is then responsible for the shipment from the point of delivery which includes unloading charges and any further shipping from that point.

The large majority of our customers (98%) prefer that we quote them CIF terms, ie CIF Chicago, or CIF Los Angeles. This saves them the hassle of finding their own freight company or paying a higher price for the freight from an unknown shipping company. Chinese companies often get lower shipping rates as they know the business culture in China and have more connections than an American.

Having our partners in China handle the freight also streamlines the shipping process and saves time.

Learn more about how we can help you import your product from China here.

Leelinesourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to see more, you can visit our website.

 

Be a Smart Garment Merchandiser

A garment merchandiser plays an important role in the readymade garments sector. A garment export order will be executed properly if the garment merchandiser is smart or efficient. To be a smart garment merchandiser, some important criteria should be maintained, which have discussed in this article.

Key factors which are too much important to be a smart garment merchandiser, those are mentioned in the below:

1. Making a list of all the daily works according to priority,
2. Complete all the listed works before leaving office,
3. Checking all the mathematical terms carefully and perfectly,
4. Keep touching with the buyer by replying his mail,
5. Try to receive and note all the information from the surroundings,
6. Making a good relationship with all the other departments,
7. Trying to note all the comments from buyers and suppliers,
8. Keeping ready all the approval in hand,
9. Cleaning the desks,
10. Taking suggestions from the others in critical time.

1. Making a list of all the daily works according to priority:

At the starting of a working day, a garment merchandiser should make a list of his total daily works according to priority. It will help him to complete all important works in timely and release the pressure in the remaining hours of that day. By following this he can also prepare a working list on a weekly and monthly basis.

Example of making a daily working list:

• Should contact with the buyer for P.P approval,
• Contact with the fabric suppliers.

2. Complete all the listed works before leaving office:

It’s a very important point for the garments merchandisers. All the listed (important) work should be done before leaving office; otherwise, these works create a burden for the next day. Because the next day will be full of other important tasks. Just keep in minds here that tomorrow never comes.

3. Checking all the mathematical terms carefully and perfectly:

All the business profit is totally related to mathematical terms. So, a garment merchandiser should re-check all the mathematical terms and calculation before confirming any decision. Suppose a garment merchandiser mistakes in fabric consumption calculation, then it will too tough for him to solve such kinds of problem in the latter. So, extra concentration is needed here.

4. Keep touching with the buyer by replying his mail:

Making contact by using mail with the buyers is a very important task for the garment merchandisers. To export a garment export order perfectly, he should reply all the emails to the buyers, as well as he has to mark all the update from the buyers, so that no information missed out about the order.

5. Try to receive and note all the information from the surroundings:

It’s very important, especially for the senior garment merchandisers. Suppose your assistant merchandiser passes important information up to you, but you have no time to solve that instantly. In those cases, you have to note that problem and solve in the free time.

6. Making a good relationship with all the other departments:

There’s no alternative way to export a garment export order in time without strong support from the other departments such like garments production, commercial etc. so, a garment merchandiser should make good relationship with those departments.

7. Trying to note all the comments from buyers and suppliers:

All the comments and updates from the buyers should be noted perfectly. The same task for the suppliers also. Otherwise, it will create various types of problems during executing of an order.

8. Keeping ready all the approval in hand:

All the approvals are very important to submit an item to the buyer. An item may change several times in its style. So it’s too much need for the garment merchandisers to keep ready all the approval given by the buyer.

9. Cleaning the desks:

A clean desk helps a garment merchandiser to work in fresh mind. An overloaded table creates huge mental pressure to the merchandisers. So, to be a perfect garments merchandiser clean desk plays a huge role.

1o. Taking suggestions from the others in critical time:

It’s another important matter to be a perfect garment merchandiser. When a garment merchandiser passes his critical times then he should discuss with others about the concerned matter. It will help him to find out a better way to solve that problem. Never think you are the perfect one & no need to take suggestions from others. A universal truth is- two head is better than one head.

Leeline Sourcing select garment merchandisers and vendors from China based on their prices, delivery reliability, delivery date adherence and quality of the item.

For any garment sourcing need from China contact us.

How To Get a List of “Good Chinese Factories”?

Hardly a week goes by without someone asking me for contacts of “good factories”. We see so many of them, the thinking goes, surely we know a few good ones.

When we did a few trade shows in Hong Kong, 7-8 years ago, it came up roughly every 30 minutes.

Why wouldn’t we do that? For several reasons.

1. Confidentiality

The short answer is “we promise confidentiality to our clients, therefore we can’t share what we have learned when working for one client with another client”.

Some people get this right away and respect us for this. Other people are capable of arguing for hours about this. Their thinking goes this way: we are not hurting our current/past client by sharing this information, but we are hurting the good suppliers out there, and it can also benefit us if we get a few % of the order (as an agent), it is a win-win-win situation, and so on and so forth.

2. Absence of bias

If we say “these guys are good” and then we are to audit their factory and/or inspect their productions, doesn’t something sound wrong here?

As Brad Pritts suggested a few years ago, a good analogy is with a judge in the US. “Each judge should try to avoid all appearance of bias as well as actual bias.”

3. Is there such a thing as a “good factory” in the absolute?

What is a good supplier to one company for a certain period of time is a bad supplier to another company. (And this also requires some explaining.)

I was glad to see that one of rules of the Asia Importal Facebook group is as follows:

We generally don’t recommend suppliers or provide suppliers lists, as we don’t think that suppliers can be divided into “good” or “bad” suppliers.

I agree! Let’s take an example.

Apple works with a famous contract manufacturer (everyone has heard of them). The products they make for Apple are truly first class — in the millions of pieces, with very fast ramp up and pretty close to zero defect.

Well, that same manufacturer also produces batches (for other customers) that would not be acceptable for sale in Walmart or Testco, and sometimes even cheats on components. I know it because we have detected these issues while looking out for the interests of a client.

How is that possible? Well, on the one hand Apple’s business is something they value. And, perhaps more important, Apple spends a lot of efforts validating their production & testing processes before launching mass production, not to mention all their monitoring all along production.

If, on the other hand, an unknown buyer comes in the picture, gives them a 50,000 USD order, and patiently waits for delivery, they might be disappointed. A second- (or third-) rate team will work on your order, and totally different business rules will apply.

A small buyer, in that situation, is actually better off finding and vetting an unknown manufacturer that accepts to sign a balanced contract. Since there is no particular confidence in that manufacturer, the buyer takes precautions. Trust but make sure to verify.

Leeline sourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to see more, you can visit https://leelinesourcing.com.

3 benefits of import/export software for wholesale/distribution companies

Many wholesale and distribution businesses consider using one or a handful of basic importing software solutions to meet their operational needs. But if the software isn’t tailored to your business and can’t help you make better decisions, it’s essentially just a glorified spreadsheet.

There are plenty of specific importing software solutions built for the wholesale and distribution industry. With a little work, these solutions can help you automate your operations and gain more visibility into the corners of your business where you may be lacking answers.

What is import/export software?

Most distribution and wholesale companies, whether they import products or only operate domestically, can benefit from software solutions.

But companies that import and export products also need a software solution that can help them manage and improve their global trade operations. These companies need a software solution with a special focus on relieving some of the complexities and stress that come with running an import/export business.

History of import/export software

The history of using software to better handle imports and exports dates back to the emergence of ERP software (Enterprise Resource Planning). ERP has its roots in inventory management in the manufacturing sector, when software was created to aid in monitoring inventory levels and report on manufacturing status.

Logistics—or the ability to coordinate, calculate and maintain shipments, shippers and vehicles—has always been a part of ERP software. These processes eventually turned into material resource planning or MRP.

Some of the most common MRP software features enable manufacturers to manage, coordinate and account for all steps of the production process, which typically include scheduling, planning and forecasting.

You can only create a lucrative import/export business by executing and materializing your manufacturing plans. Taking advantage of the right software features can help your business take the extra step over the competition.

Top benefits of import/export software for wholesale and distribution companies

Import and export software can help you determine the cost and profitability of your products, maintain a consistent pricing strategy and gain better visibility into your inventory. But how? Let’s take a look at some of the main features of importing software and how they can benefit you.

1. Track landed cost of imported goods

Landed cost tracking provides visibility of imported goods through shipment tracking. It helps you track all associated costs involved in shipping the imported goods to your final destination.

There are often hidden costs involved in making certain goods available for sale. Your true cost will always be higher than the cost you pay to the vendor for the product.  In addition to the price of the goods, you’ll have to handle freight, customs and duty costs.

Landed costs are important to track because they’ll help you calculate your profit margins on international transactions.

Eliminating these hidden costs from the final product price can also help you attract customers. Paypal states that 24 percent of consumers say having to pay customs duties/fees and/or taxes is their biggest barrier to cross-border shopping.

Benefits of landed cost accounting

1. Identify otherwise hidden cost elements of imported goods
2. Calculate cost estimates by product based on volume, quantity and value
3. Track shipment arrival dates

How importing software can help you calculate import duties during the U.S.-China trade war

A prime benefit of landed cost tracking is identifying the cost elements of imported goods. So can import/export software also help importers calculate import duties on their products with the ongoing U.S.-China trade war?

The current trade war a very relevant issue to be worrying about as I write this. Some manufacturers have already pulled certain models of their products from specific markets due to rising import tariffs.

As tariffs affect more and more products, companies will now be dealing with a 10 percent tariffs on an estimated $200 billion in Chinese imports. In fact, a 10-25 percent rate will become the new norm for the foreseeable future. Importers will need a way to plan accordingly.

Import duty is a tax collected on imports and some exports by a country’s customs authorities. It’s usually based on the imported good’s value. Depending on the context, import duties may also be referred to as customs duties, tariffs, import taxes or import tariffs.

Import duties, freight and insurance are all direct costs that we need to factor into the landed cost equation. Luckily, a smart enough import/export software will include this as a feature of its landing cost accounting functionality.

To find the accurate gross margin, you need to attribute both freight costs and duty costs between products. Once determined, you’ll have your total landed cost. Consider the following example from Brightpearl:

1. You purchase two products from the same supplier. Product “A” costs $5/unit and product “B” costs $7.50/unit. Your company then sells these products for $12 and $15, respectively.

Note: If you just use these numbers without analyzing your landed cost, you end up with a much crude estimate of gross margin on product A of 58 percent (cost of $5 divided by $12 selling price) and 50 percent on product B (cost of $7.50 divided by $15).

2. Decide how to attribute the freight and duty costs between two products. In this scenario, freight cost will be based on quantity and duty cost on value.

3. You order 1,000 units of product A and 500 units of product B in the same container for a freight cost of $1,500 and an import duty cost of $875.

4. Based on the quantity, all units will have a freight cost of $1/unit (1,500 units / $1,500).

5. Based on value, we’ll say product A will be assigned a duty cost of $500 ($0.50/unit) and Product B will be assigned a duty cost of $375 ($0.75/unit).

6. The landed cost of product A is now the original cost of $5/unit plus the freight and duty cost ($1 + $.50/unit) equally a total of $6.50/unit.

7. You can now divide the difference between the new landed cost and the selling price by the selling price for each product to get your more accurate gross margin.

Using landed costs can help you calculate more accurate gross margin figures. These figures will give you a much clearer insight into the costs of products, empowering you to make more informed decisions about your stock and sales.

2. Ease vendor and customer payments with multi-currency support

Multi-currency support is an accounting method that allows for the input of two or more currencies. An example would be handling your accounting in both USD (U.S. dollars) and CNY (Chinese Yuan). Not only does multi-currency support make your accounting easier, but it also allows your international customers to pay in their preferred currency.

Having importing software with multi-currency support is vital. It’s much more than just simply calculating conversion rates. The cost of doing business in a specific country will vary depending on the product you’re importing and the time of year.

Multi-currency support will handle these conversions for you and l help you create a better business plan based on the information it provides.

Foreign currency conversion applications allow you to keep your ledgers in the relevant local currency or even access the same financial information in the currency of your choice.

Additionally, with the right package, you can generate purchase orders and invoices in the right currency for your vendors and customers and maintain a price list for each currency.

Benefits of multi-currency support

1. Ensure customer loyalty by improving the customer experience
2. Avoid extra charges related to currency conversion rates
3. Maintain consistent pricing across all locations

3. Control inventory with warehouse management software solutions

Warehouse management is the process of managing inventory on an increased scale across multiple locations. At its core, import/export software will help you pick, pack and ship orders. A complete warehouse management software functionality will include capabilities such as inventory control, order fulfillment and purchasing.

Warehouse management software can typically integrate with whatever existing order and operating process your business already has in place. A warehouse management module helps you see where an order is in the shipping process, gives crucial insight as to how fast orders are completed and helps identify potential weak points in your warehouse processes.

Technology also continues to improve in warehousing, as barcoding and RFID technology allow importers to view inventory in real-time. The best warehouse management software providers are already implementing such emerging technology into their solutions.

Benefits of warehouse management software

1. Increase the accuracy of order fulfillment
2. Shorten delivery times
3. Reduce overflow of on-hand inventory
4. Increase the visibility of an order’s status
5. Optimize storage space
6. Minimize inventory movement

How to pick the right importing software for your wholesale/distribution business

Companies in the market for importing software will need to first know themselves before they know what type of software to pursue. With all the available options on the market, you’ll want to save time searching online by making sure you know what to look for.

The best type of importing software for you will differ depending on your industry. Some software will be geared towards “distributors”, but what kind of distributors? Does the software option have a narrow focus, or does it appear as a broad “one size fits all” distribution software?

The next question you’d want to ask yourself is, can I get away with having a generic software? Or does the work you do require very specific and niche requirements? Can a software that works for your friend’s food distribution company work just as well for your electronics distribution company?

The answer isn’t always clear. Many solutions thrive at providing features for multiple sub-industries, while others focus specifically on just one or a few.

Examples of popular import/export software products

While there are plenty of capable solutions that have the features and capabilities discussed above, here are a few of the market leaders that have proven to provide most of the benefits already mentioned.

Acctivate: This software is a QuickBooks Inventory Management software option geared towards distributors and online retailers. Among their available features is the capability to perform as an import/export software. Importers familiar with QuickBooks might find Acctivate to be an affordable and easy-to-implement option.

Blue Link: This software is a complete accounting and inventory ERP for distributors. It offers an all-in-one experience to handle things such as e-commerce, barcode scanning,  reporting, analytics and of course the import/export software features, such as landed cost tracking. They specifically target food and beverage, apparel, consumer goods, industrial products and electronics industries. Most of Blue Link’s customers are medium-sized enterprises with five to 150 employees.

Conclusion

No matter what your needs are or what industry you’re in, an importing software solution exists out there to help you achieve your goals faster and, hopefully, make your business more profitable than before.

The features mentioned above are only some of the many great reasons to look further into why an import/export software might be a good fit for your growing business.

Leelinesourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to see more, you can visit leelinesourcing.com.

Recommendations to Optimize Your Supply Chain

1. Develop A Supply Chain Strategy

In most businesses, they consider supply chain management an independent function in the company, and that it is not involved in general business strategizing. This is ludicrous. The supply chain is one of, if not the key, factor in global business success. Companies that treat their supply chain like an extension and not a primary function of the company tend to struggle more with success.

Implement the supply chain into the business strategies and goals to better leverage it to achieve determined metrics.

2. Design the Supply Chain Network

As much as including the supply chain into business strategies determines success, the need to design the supply chain network to operate at an optimal level is paramount. Focus hard on the outbound distribution aspects of the supply chain. For the rest of the network design, remain flexible, as needs and demands change over time. If your supply chain is already in motion, but you haven’t optimized it yet, consider a network design audit or review to determine where you can streamline the system already in place.

3. Customer Satisfaction

If you want your business to be successful, then you need to focus on customer satisfaction in regards to how your supply chain fulfills it. The customer must be the primary focus, and that means optimizing your supply chain to ensure customer satisfaction. If you cannot satisfy the customer, you will eventually find yourself without customers, which means no business.

Here are some factors that can negatively affect your supply chain performance:

(1) Long lead time

(2) Poor on-time delivery

(3) Poor order fulfillment

(4) Inventory shortages, creating longer wait times

(5) Poor product quality

(6) Poor service quality

If you identify any of these problems in your current supply chain, it’s best to address them immediately. First, you want to determine the root cause. Then, you want to resolve that root cause. Finally, you want to ensure your solution is working with frequent review and analysis of resolution.

4. Costs of Supply Chain

How much does it cost to meet the market demand using the current supply chain? This question is typically used as a benchmark for success before delving into the finer details of supply chain metrics. Various factors like inventory surplus, shipping costs, product manufacturing costs, etc. all play a role in being able to serve the customers’ demands. Being able to find ways to serve the customer without deteriorating quality of product and delivery times can help reduce supply chain costs, which increases profits.

Poorly managed supply chains can inflate overall costs in these aspects:

(1) Transportation

(2) Procurement

(3) Inventory storage

(4) Inventory management

(5) Waste

(6) Market forecasting

5. Supplier Success

The level of success your suppliers experience directly affects your supply chain and your business’s success. It’s best to work directly with at least your primary suppliers to decrease supply chain risks or uncertainties as much as possible. Unfortunately, there is always a risk in business, but the ability to mitigate risk while retaining an opportunity for reward is what you’re going to aim for in this instance.

Remember, your customers do not see a distinction between you, your manufacturer, or your supplier. It’s all one company in their eyes, and it’s important you treat your supply chain as one entity under the same umbrella as your own business.

6. Ethics and Responsibility

To build off the last point, it’s imperative you operate your supply chain and overall business the right way. Although the various participants in your supply chain are of different entities and businesses, it’s still your responsibility to ensure ethical procurement and corporate responsibility. If something goes wrong in your supply chain, it’s your business that will be liable for the social reputation fallout. Treat your supply chain with the highest regard as you work to meet the demands of the market.

7. Inventory Logistics

The management of inventory is a huge factor in the success of supply chains. Whether you have too much, too little, or just the right amount of inventory will affect the success of your business. Too much inventory means capital is tied up in products you may or may not sell, which can lead to substantial losses if the market shifts. Keeping your inventory at the amount the market demands is a balance you must master.

Leeline sourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to know more,  you can follow us.

 

building materials from China

Most home builders find importing materials from China a good idea. These wholesale building materials are taken in at very cheap prices to be used by construction firms and a number of US retailers. A lot of industries today are making really good business coming from their deals with building materials suppliers in China. Such success has contributed to increased demands for an outsourced home building materials company overseas.

The growth of China as manufacturing and outsource powerhouse has grown incrementally through the years. About 25 years ago, China’s share in the global manufacturing output was at 3-5%. Today, half of the world’s goods come from Factory Asia. Name any product in any industry. Name any international brand. There’s a high chance that China has something to do in its production, one way or another.

The same can be said in the home building materials supplier industry. If you look at every corner of your house, you’ll surely find an item or structure that came from China. That is how lucrative the business of importing wholesale building materials from China is. However, there are a lot of factors and situations to consider if you are planning to start a wholesale business of importing building materials from China.

We have come up with the most comprehensive and complete guide for home builders on finding a building materials company and buying their wares at wholesale prices. We will also help you by sharing some trade secrets on how to get the best deals through the best places and methods like online sourcing, hiring a broker, and solving issues. Our guide is also a go-to source for those who want clear information related to documentation, importation, and solving the common problems and challenges one may face in the home building industry. We’ll show you how to import building materials from China.

1. Introduction

1.1 What makes China the best source of imported home building materials?

1.2 Terms in International Trading and manufacturing (Incoterms)

 

1.1 What makes China the best source of imported home building materials?

China is the largest country traders from around the globe import from. Wholesalers and retailers of building materials in the US alone have established connections with corresponding wholesale building materials suppliers from China in the production of their privately labeled products.

There are four main reasons why sourcing building materials suppliers from China is preferred by many businesses:

 

1.2 Terms in International Trading and Manufacturing

International Commercial Terms, or generally known as Incoterms® is the universal language used by importers and exporters around the globe. Governments and legal authorities have also adapted the Incoterms® to reduce and avoid uncertainties and misinterpretations when it comes to international shipping transactions.

The following Incoterms below are usually used in transactions between a US trader and a building materials company from China:

FOB

FOB stands for Free on Board. FOB is the most commonly used type of agreement. Exporters and importers regard this kind of agreement to be fair for both parties.

FOB can be simply explained like this:

The building materials supplier is solely responsible and liable for goods until it is received by the carrier on a designated location to be the point used in shipping from China to the US. From then onwards, the responsibility and liability transfer to the buyer.

There are also two subtypes of FOB: the FOB shipping point and FOB destination point.

FOB shipping point means the responsibilities and liabilities of the supplier ends once the shipment leaves the dock and heads to the US.

FOB destination point means the responsibilities and liabilities are transferred to the buyer once it arrives at the port of destination.

This type of agreement is only applicable to transactions that are using the sea freight shipping mode.

EXW

EXW (Ex Works) type of shipping is an agreement in which the buyer arranges every step necessary for the wholesale building materials’ shipping from China to the USA. The only advantage for buyers that we can think of is they have complete control of most, if not all of the processes involved.

Manufacturers love this form of agreement. The seller is only obliged to help get an export license and Certificate of Origin. The procurement of other documents falls in the hands of the buyer. EXW is not that popular and is rarely used alone. It is usually combined with other Incoterms for parties to arrive at a better and fair agreement.

However, using a freight forwarder to handle the steps in the shipment process while using EXW could be beneficial for the buyer. Check out our steps on how to import building materials from China below.

BOL (Bill of Lading)

The Bill of Lading is a document between the shipper and carrier that acknowledges the receipt of cargo for shipment. The BOL is an absolute requirement before the wholesale building materials’ shipping can come into fruition.

International laws such as the Hague Rules, Hague-Visby Rules, and Hamburg Rules require the carrier to issue a BOL stating the details of the cargo such as nature, quantity, quality, and leading marks.

To be specific, these are the details mentioned in a BOL used in shipping by building materials suppliers in China:

• Content and classification of the shipment (tiles, steel frame, insulation)
• Type of inner packaging (boxes, crates, drums, sacks or rolls)
• Outer packaging
• Prominent markings or characteristics of identification
• Type of transportation used
• Specific handling instructions
• Weight and volume of the cargo
• Details of the shipment’s journey which includes:

The three main functions of a BOL are the following:

Brokers and agents can also help in getting this legally binding document. Thus, they are also included in the BOL outline whenever applicable. In some instances the key players below may be included in the BOL:

• Shipper and consignee of the cargo
• A carrier who issued the Bill of Lading
• Origin freight forwarder
• Arrival agent or destination freight forwarder
• Freight payer

The advancement of technology and easy internet access has created the option for any building materials company to use paperless BOL for shipping negotiations. Also called Electronic Bill of Lading, this digital document is commonly used today as it has the very same functions and legality of a paper BOL.

MOQ

Minimum Order Quantity is an Incoterm that refers to the least amount of units, in this case, wholesale building materials, the manufacturer or supplier is willing to produce at one time. The building materials company set this type of agreement to cover the costs during production and ensure profit is made with every production run.

Every supplier may have different MOQ. The minimum order quantity range from 10, 50, 100, to 100,000 —all depending upon the type of wholesale building materials and production processes involved. MOQs can also be defined by the currencies like “$10,000 worth of products”.

The importance of MOQs lies on the fact that both building materials supplier and the buyer can determine and agree on how much units are needed in order for both parties to start talking about doing business together. Some businesses operate on a small scale and need building materials suppliers who are willing to provide in small quantities. There are also big volume buyers who are seeking for a building materials company that have the capacity, materials, equipment, and personnel to handle such demands.

OEM

OEM is the acronym of Original Equipment Manufacturer. Its actual definition may be a bit vague but it basically states that one company can sell products, parts, and equipment made by another company using the former’s brand.

The purchasing company is enabled to obtain its needed product without the need of owning and operating the manufacturing company. Moreover, OEM relies on their ability to drive down the cost of production through the concept of economies of scale.

Product Sourcing Agreement is another term used for OEM. The OEM is composed of several other agreements related to IP security and manufacturing outsourcing. It is also used to clarify some very important components in the deal with the building materials supplier

Items that are at least included in an OEM include:

• IP ownership
• Product quality
• Timeliness of production
• Ownership of Mold and/or Tools
• Non-compete, non-circumvention, non-disclosure, NNNs
• Sub-supplier/sub-contractors involved
• Liquidated damages, in cases of breaches

CIF

A CIF or Cost, Insurance, Freight type of agreement solely places the burden on the supplier. The building materials supplier covers all shipping costs from China to the US, plus insurance.

Both parties shall agree on whether the delivery ends at the point of destination or at the final delivery address. The buyer is responsible for paying the costs once the goods arrive at the point of destination though.
The CIF agreement is much more expensive compared to the FOB as building materials suppliers add a premium charge to compensate for their efforts.

2. Types of Wholesale Building Materials to Import from China to the US

2.1 Interior Building Materials

2.2 Exterior Building Materials

 

2.1 Interior building materials

Building new homes and commercial spaces are signs of progress. The same can be applied to the US. The constant grind towards progress and development necessitates the use of home building materials for various purposes. Take a look at these products that we personally imported from building materials suppliers in China.

The quality does not stray far from those that are manufactured domestically but the prices are oceans apart in comparison.

Exterior door/ front door Fiberglass

This door is built to last and can add substantial curb appeal to your property. This fiberglass mahogany front door unit comes with an MSystem 2-year Warranty on the Door Component and the Base Prehung System as well as a 10-year warranty on the Glass Lite.

All of our fiberglass mahogany front doors are virtually maintenance-free and will not warp, rot, dent nor split. The door has an accompanied pre-hung unit which seals out the effects of weather and practically eliminates air and water infiltration altogether.

Patio door

The patio door is a smart addition if you seek elegance and functionality for your home. This product is part of the MasterPiece Series of MP Doors, its manufacturer. This type of door is engineered with Hydroshield Technology which makes the full composite door system 100% waterproof and resists rotting, warping, splitting, delaminating, denting and rusting.

This gliding door includes:

• Durable adjustable stainless steel rollers and track
• Stylish satin-nickel handle with keyed lock and an auxiliary flush bolt.
• A smooth white interior and exterior finish

This patio door is engineered to withstand a lifetime of use and offers peace of mind that your door will remain beautiful for years to come —a low maintenance masterpiece only from the best building materials suppliers in China.

Sets of ceiling grid products also include the following:

• 15/16″ and 9/16″ flat grid
• 9/16″ decorative profiles
• Clean Room products
• Drywall grid systems
• Axiom perimeter trims

Ceiling Panels

The Stratford White Feather-Light Ceiling Panels are somewhat unique compared to other ceiling panels people are accustomed to. This feather-lite weight makes these ceiling panels unique. The panels are formed from a thin sheet of vinyl that is only 0.013 in. thick—just like holding a business card.

The building materials company’s geometric design combined with the inherent strength of vinyl makes these tiles rigid, durable and easy to install. Their special design tricks the eye into seeing 2 separate square tiles rather than one big 2 ft. x 4 ft. tile.

Their white finish is bright, pure and easy to clean. Place them in your ceiling grid and you ’ll be thrilled by the way the Stratford improves the look of your room.

Choices of ceiling tile products include:

• Mineral fiber tile
• Fiberglass tile
• Painted panels

Ceramic Floor Tile

The Glazed Ceramic Floor and Wall Tile from one of the top building materials suppliers in China, MSI Bergamo Gris features a matte finish to help add style to your space’s design. This rectangular gray tile is made with the HD inkjet technology and features a luxurious stone look that adds class to a contemporary aesthetic.

Suitable for medium-duty commercial or residential floors and walls, using this tile incorporates a distinctive personal signature in a wide variety of designs and patterns.

Features:

• 6 square feet, 8 pieces per case. The weight of each case is 70.08 lbs.
• Grade 1, first-quality glazed ceramic tile for floor, wall and countertop use.
• 12 in. width x 24 in. length x 9 mm thickness.
• Glazed smooth matte finish with a low sheen and slight variation in tone.
• P.E.I. Rating III is suitable for medium-duty residential and commercial floors including kitchens, corridors, terraces and areas used more often with everyday footwear and small amounts of dirt.
• Semi-Vitreous flooring has a water absorption of 3%-7% for indoor use.
• Non-Vitreous flooring has a water absorption of more than 7% for indoor use.
• Slip-resistance/C.O.F. rating of .50 both wet and dry is marginally skid resistant, appropriate for indoor or some outdoor applications.
  Residential and commercial use.

Laminate Flooring

This laminate flooring product from Pergo Outlast+, the Vintage Pewter Oak has a warm grey color. Its neutrality perfectly fits any home and commercial designs. This home building material is sought after for its durability and beauty.

Take a look at its impressive features: :

• Wear protection (SurfaceDense)
• With SpillProtect waterproof technology
• 10 mm thickness + 2 mm attached underlayment x 7-1/2 in. width x 47-1/4 in. length planks
• 19.63 sq. ft. per case. Tiles per case: 8. Case weight: 36.7 lb.
• Vintage Pewter Oak, Medium Color, Authentic Deep Texture with SurfaceDefense
• Protection
• Planks have a pressed edge
• Attached 2 mm underlayment that reduces sound and increases ease of installation
• Appropriate Grade for Installation: Above Grade, On Grade or Below Grade
• Radiant heating may be used
• Can be installed over smooth, flat, dry surfaces: concrete, ceramic tile, vinyl and wood
• Approved for residential and light commercial use
• Lifetime limited residential and a 10-year limited light commercial warranty

Marble Floor Tile

This Greecian White Polished Marble Floor and Wall Tile, one of the wholesale building materials from MSI is best used to brighten any interior wall, floor, and countertop with its elegant white shade. Its smooth, high-gloss finish gives a distinct beauty—-only found in natural marble stones— to your residential or commercial space.

 

Porcelain Floor Tiles

MARAZZI’s Montagna Dapple Gray Porcelain Floor and Wall Tile beats any type of wood when it comes to aesthetics and durability. Its rugged look can be mistaken for wood but its ability to resist moisture makes it the best choice when it comes to versatile applications.

Solid Hardwood Flooring

The solid hardwood flooring from the building materials company—Bruce Plano Collection—gives the natural beauty of wood tiles like no other. Minor imperfections like mineral streaks, knots, and small holes give every individual tile its own character and color variation.

Vinyl Flooring

The latest innovation from building materials supplier Home Depot is the LifeProof Luxury Vinyl Flooring which is a highly engineered closed-cell foamed PVC core. This product delivers strength and rigidity despite being lightweight. The vinyl planks are authentically embossed as well as designed with drop-and-lock joints for easy installation.

The attached underlayment minimizes sound, enhances warmth and comfort, and absorbs shock. Product safety is also assured as it contains no formaldehyde and phthalate.

Kitchen Interior Section

China can be a great source of products, equipment, and kitchen building materials. The designs, colors, and materials widely vary according to the specs of the building materials suppliers in China.

These are the major reasons why wholesale building materials are appreciated by home and industrial builders alike for their kitchen construction and remodeling.

Here are the highly regarded kitchen products that are ready to install:

Kitchen Cabinets

Home Decorators Collection’s Hallmark Arctic White features solid MDF doors and drawer fronts with a clean, durable white thermofoil finish. These cabinets have CARB compliant all-plywood construction with full-depth 3/4 in. thick adjustable shelves for added storage. All cabinet sides have natural birch veneer finish for added design flexibility.

Kitchen Countertops

This amazing collection of countertops made by building materials suppliers in China is very popular among imported products to the US. The price and quality of these wholesale building materials are unparalleled.

Kitchen Countertops

This amazing collection of countertops made by building materials suppliers in China is very popular among imported products to the US. The price and quality of these wholesale building materials are unparalleled.

Bathroom Toilet

The Cadet 3 FloWise Toilet is composed of a separate tank and a toilet bowl. Its efficiency and functionality are supplemented by a seat, cover, and wax ring.

Here are the features of the Cadet 3 FloWise toilet:

• 2-piece design composed of a separate tank and bowl.
• Elongated bowl for greater comfort.
• ComfortHeight design features a height comparable to that of a standard chair to make sitting down and standing up easier.
• WaterSense certified high-efficiency design uses 1.28 GPF for significant water savings.
• Constructed with durable vitreous china for cleaner, long-lasting use.
• Cadet 3 flushing system with 2-1/8 in. glazed trap-way and oversized 3 in. a flush valve for a powerful flush.
• Includes plastic seat and cover with the EverClean surface, wax ring for easy installation.
• Everclean surface inhibits the growth of stain and odor-causing bacteria, mold, and mildew.

Bathroom Vanities

A home builder has a lot of choices when it comes to stylizing and sprucing up a bathroom. These bath vanities from building materials suppliers in China have already delivered the home building and renovation industries a lot of fortune.

The choice of home vanities depends on your plans at hand. The range of choices for bathroom vanities depends on the style, size of the area, and quality of the materials that make up the vanity.

Wall Panels

These imported wall panels are also among the wholesale building materials that are built with high quality and safety in mind. These are specially designed by a building materials company which is geared towards meeting our local standards of safety. Great consideration is placed on the materials, sizes and color options.

Materials with special features include fire rated and moisture/mold resistance gypsum boards, fiberglass matted gypsum boards, abuse, and impact resistant boards, acoustic wall panels, tile backers’ boards, and shaft wall liners.

Acoustic Insulation Wall Panels

These soundproof wall panels are suited well for living rooms, home theater, game rooms, office spaces, and auditoriums. Their ability to enhance sound while dampening the noise distractions is just remarkable.

2.2 Exterior Building Materials

Now, for the list of exterior wholesale building materials, we’ve chosen the following products that we consider to be the bestsellers among building materials suppliers in China.

Drywall

A category with extensive selections, drywall is used in type 1 to 4 construction applications. Here are examples of this specialty product:

Regular drywall – this drywall is composed of a firm gypsum core wrapped in paper and is available in a variety of sizes and thickness. The regular drywall is designed for direct attachment using screws, nails or adhesive to wood or metal framing and even existing surfaces.

Fire-rated/Type X drywall – laden with protective additives and glass fiber reinforcements, this type of drywall is useful for interior walls and ceilings of residential and commercial spaces.

Non-paper faced drywall –

Moisture and mold resistant drywall – developed with advanced sheetrock technology which provides enhanced protection to inhibit mold and other microbial development. It also has Firecode resistant properties.

Impact resistant drywall – this drywall has a dense gypsum core reinforced by glass fiber. This product is useful for high traffic areas.

Tile backer – drywall with unique moisture- and mold-resistant board which makes it ideal for wet areas such as bathrooms, floors, and kitchens.

Shaft wall liner – this product is made with a special type of moisture-resistant panel which as well has fire-resistant properties.

Insulation

Insulation materials are commonly used in building or renovating commercial and residential buildings. These wholesale building materials can be used for both interior and exterior applications.

Insulation solutions include:

Batt/roll insulation – Made from fiberglass, mineral wool, plastic fibers or natural fibers, this product by Owens Corning EcoTouch Insulation is easy to use. It helps keep the area cool during the summer. Batt/roll insulation is used on unfinished walls, foundation walls, floors, and ceilings.

Rigid foam board insulation –

Loose-fill and blown-in insulation – made from cellulose, fiberglass or mineral wool. Loose-fill insulation is most useful for hard-to-reach places, enclosed existing walls, open wall cavities, and unfinished attic floors.

Rigid fiber insulation – made from fiberglass or mineral wool. Rigid fiber is often used in locations that are subject to high temperatures, such as ducts.

Mineral wool insulation – Rockwool Comfortbatt is a special type of batt insulation is made from inorganic materials and is naturally fire retardant. It also dampens noise transfer between rooms, does not deteriorate, can be installed at any temperature, and is resistant to water, mold, and mildew. Best for exterior wood and steel stud applications.

Roofing and Siding

Here are the latest roofing and siding products offered by building materials suppliers in China at very competitive prices. Manufactured using the latest technology in the industry, customer satisfaction is ensured with every item of these wholesale building materials.

Asphalt Roofing Shingles

Ondura Jumbo Shingles are designed for easy handling and installation for small roofing projects. Each Jumbo Shingle can cover over 8 sq.ft. Each pack can cover up to 96 sq. ft., depending on installation.

Ondura Jumbo Shingles have no sharp edges, weight about 5 lbs. each, and transforms the roof with a unique look.

Other features:

• Installs with commonly available tools
• Pack contains 12 jumbo shingles that measure 48 in. Width x 26.33 in. Height
• No sharp edges and will not corrode
• High wind resistance

• Can be installed over most other types of roofs
• Lifetime limited warranty
• Full line of matching accessories

Fiber Cement Siding

This fiber cement siding is manufactured by Weatherside and is meant to replace those old asbestos siding shingles. These asbestos-free pre-primed siding shingles are resistant to warping, denting, rotting, and termite infestation. Weatherside, the building materials company responsible for such a great product, also made sure the easy installation of this siding through its design.

Metal Roofing

This Metal sales Classic Rib product is an all-season metal roof suited to protect as well as provide beauty and style at an affordable price.

These Classic Rib products are coated with MS Colorfast45, a superior four-layer coating system with a long-term ability to stand up to the elements.

Its 7 color options have improved energy efficiency qualities. It acts by reflecting sunlight before it can be absorbed as heat. This radically reduces the amount of energy needed for cooling the building. Classic Rib also provides you with decades of worry-free service with low maintenance requirements.

Vinyl Siding

This beauty of these wholesale building materials from Ply Gem Performance Collection provides elegance to any home exterior. The Transformations vinyl siding comes in 13 absolutely stunning colors. Just take a look at these features:

• Constructed from low-maintenance, durable vinyl. No need to worry about scraping, painting or staining at all.
• Advanced locking system meant to provide a precise, secure, tighter fit and easier installation.
• .040 thickness for added performance.
• Our unique interlocking system ensures a strong, secure installation.
• Withstands wind speeds up to 165 mph.
• Hang-tough technology is our exclusive formulation and process that boosts durability to resist cracking, impact and thermal distortion.
• Limited lifetime warranty is a premium guarantee.
• Certified by the vinyl siding Institute for product quality and color retention, which guarantee this product meets or exceeds long-standing, accepted industry standards.

Deck and Railing

These top-of-the-line Trex decking, railing, porch, and fence materials are made from premium materials by building materials suppliers in China and are ready to install.

Composite Decking Board

Manufactured by Fiberon, this Veranda Composite Decking has amazing benefits and advantages compared to wood but at a very similar price. It may look like wood but is resistant to warping, rotting, weather damage, and insect infestation. The 15-year warranty provided by the building materials company is also a welcome bonus.

Features:

• Mold and mildew resistant surface.
• No sanding, staining or sealing required.
• Environmentally friendly; made with premium recycled wood and polymers.
• Easy to clean.
• Single board square footage – 7 sq. ft.
• Approximate board weight – 2.05 pounds per linear foot.

Deck Tile

The appreciation of realistic, beautiful wood products is perfectly exemplified by AURA Deck and Balcony Tiles. The variant colors and wood grain color streaking just accentuates its beauty.

Features:

• 100% Premium polymer, will not split, crack, splinter or fade.
• Ultra-low maintenance, created to withstand the elements.
• Contains no organic material, eliminating issues of mold, mildew, rot, and insects.
• Easy to install.

Metal Deck Railing

Manufactured through a robust pre-engineered fencing system, EZ Fence is one of the wholesale building materials which combines durability, strength, and low maintenance of aluminum to provide the perfect structure for outdoor living spaces.

The EZ Fence deck railing is a favorite among contractors and DIY Installers, according to a building materials suppliers in China.

The following features speak for themselves:

• Alluring design preferred in today’s outdoor living spaces.
• No unsightly screws, clips, or rivets are exposed —just the finished look.
• Easy to assemble and install. No welding needed.
• Gate kits available.
• Family-friendly – eliminates toxic wood treatments, constant splinters, and protruding nail heads that harm kids and pets
• Engineering documents included with each order for easy permits if required.
• Sturdy aluminum design exceeds current international building codes

PVC Deck Railing

The cornerstone of the Endurance product line, Original Rail is the most complete system of deck railing kits that allows easy installation to any surface at any angle. The presentation is elegant yet no sacrifice or compromise had been done to its safety and high-quality standards.

Features:

• Easy to install
• Low maintenance
• Standard kit length and height: 6 ft. x 42 in. w/2 in.

EIFS and Stucco

Here are some of the EIFS and stucco supplies that fit with any home or commercial types of construction. They are wholesale building materials of the highest quality and have met all standards, policies, and compliance testing. The Exterior Insulation Finish System (EIFS) is a lightweight synthetic wall cladding that provides an insulated finish surface and waterproofing in an integrated composite material system.

EIFS Stucco Mesh

The Eifex mesh offers the best exterior or interior structural reinforcement material used for stucco, cement, plastic, asphalt and marble material.

This extremely durable and decay resistant fabric displays flexible properties, high strength and excellent alkaline resistance is widely used as the ideal exterior insulation and finish system and considered to be the innovative world leader in cladding, coating and restoration systems.

Features:

• Non-adhesive
• High tensile
• Deformation resistance
• Fire resistant

• Perfect chemical stability
• 150 ft. roll
• 4.5 oz. Material thickness

Stucco Coat

This high-quality Fastwall Stucco Base Sanded One Coat is composed of Portland cement, lime, fibers, propriety additives, and other materials to meet the highest of standards. All you need to do is add water. Sand has already been added for a perfect mix ratio.

Features:

• Covers between 15 sq. ft. and 25 sq. ft. depending on thickness.
• The single base-coat system can be installed from 3/8 in. to 1/2 in. thick in a single application.
• Code-recognized assemblies offering fire-resistant ratings.
• Easily troweled or pumped.
• Resists impact, termites, rotting and fungal infestation.
• Fiber reinforcement for long-term durability.

Steel Frame

This extensive line of metal framing and accessories from building materials suppliers in China comes in a variety of sizes and lengths as well as with a full selection of accessories.

Here are some examples of these wholesale building materials:

Light gauge steel studs and track – designed for use in interior non-load bearing applications. Products are produced in thicknesses from 15-33 mils.

Heavy gauge steel studs, track, and joists – designed for use in curtain wall and load-bearing applications. Available in 20 gauge to 16 gauge with flange/leg sizes ranging from 1-3 inches.

Shaft wall studs, track and jamb struts – created as rigid high-performance products to maintain shaft wall integrity. These products are manufactured in 25 gauge, 20 gauge, and 18 gauge.

Special orders/Custom – special order metal framing items of customized specifications are available upon request.

3. How to Import Building Materials from China to the US

3.1 How to find a building supplier in China for a certain product?
3.1.1 Online sourcing
3.1.2 Trade Shows
3.1.3 Wholesale market
3.1.4 Purchase through Broker (or sometimes ASA sourcing agent)
3.2 How to transport building materials from China to the USA?
3.2.1 Sea freight from China to the USA
3.2.1 Container Types
3.2.2 LCL/FCL
3.2.3 Major ports in China and US
3.2.4 Lead time
3.2.5 Sea Freight Rate Calculation
3.3 Customs clearance and import duty and tax from China to the US
3.3.1 US Customs clearance process
3.3.2 Customs Bond
3.3.3 US HTS code and import duty and tax from China to the US
3.3.4 Landed cost
3.4 Safety Regulation, Compliance Testing, and Certificates

All business startups basically start with two things: A basic product idea and supply. Once a brilliant product idea comes to mind, the next objective will be where to find the building materials supplier that perfectly fits the business’ needs. In today’s trading industry trends, most building material suppliers are currently seeking out and found on the other side of the globe—China.

The following are major reasons why manufacturers and building materials suppliers in China are sought after:

• Labor and manufacturing costs are much lower compared to other countries.
• There are a lot of manufacturers to choose from.
• Online services and communication to the other side of the world are easier and better in this day and age.

A building materials supplier may be someone who is:

• Capable of producing your product or conceived idea.
• Also a manufacturer, wholesaler, or distributor of currently existing products.
• Also, a dropshipper who can fulfill orders.

Curbing the Negative Impressions

While most US-based traders are fine doing transactions and establishing partnerships with building materials suppliers in China, there are also some who may feel uncertain due to some dejected stories floating about. Most of the time, these stories are true.

The most common reasons for such negativity towards dealing with suppliers from China are the following:

The items presented above are undeniably true. This is true in China as well as in other countries in the world. There are companies that have shady practices like those mentioned above but there are also manufacturers and suppliers hailing from China that are producing goods at high quality at very competitive prices. Such good-intentioned companies adhere to the ISO 9001 Quality Management System, which makes their products world-class.

But like any trading done with suppliers from other parts of the world, buyers must be dutiful and conscientious before agreeing on any transaction. Thorough research is necessary, not just in the context of how to import building materials from China but also in handling businesses in general.

More about this in the discussion of Common Problems and Challenges in Importing Building Materials from China to the US.

Finding the Right Building Materials Company

After reading about the reality of international trading, it may be daunting and scary for some starting entrepreneurs but through this guide, we will help you find the best building materials company efficiently and effectively as well as how to import building materials from China with ease.

There are various sources that can be rich invaluable information about the wholesale building materials you wish to bring in to the US. All you have to do is find the right supplier in the best possible locations.

This list below will guide you where to find the best places to find a home building materials supplier and how to import building materials from China.

Online sourcing

The advent of the internet has brought traders from all parts of the world much closer than it has ever been. International trading today most likely involve the internet in finding new ventures. Google itself has established itself to be a great source of trading.

There are a lot of available free online supplier directories that contain thousands of manufacturers, wholesale building materials suppliers, and hybrid traders both from both a domestic and overseas standpoint. This entails an easier comparison for the buyer as well as conveniently aid in the decision-making process.

We want to share our own experience related to seeking the perfect building materials company for your ideal business plan. Take Alibaba below as an example. It enabled us to get the best opportunities for finding the perfect partner in importing building materials from China to the US.

Let us go in-depth and see what makes this platform great.

About Alibaba

Alibaba is a platform that offers a wide variety of products of wholesale building materials suppliers from China. It has been noted to be the biggest eCommerce website in the world. The number of brands that showcase their wares on the site is literally unmeasurable. Having said that, there’s a feature in which user navigation is made so easy that access to the supplier directory is not a problem.

What makes the website distinct is one can purchase a single item or by volume with any transaction. In this website, transactions can be directly done with the manufacturer or the building materials supplier. High volume discounts and custom product development are major features that make Alibaba one, if not the best trade and commerce website.

The platform is also the site where the best and most experienced entrepreneurs hang out. One can commonly find highly customized products at very low prices. Plus, the following and audience here are abundant making any new venture or product introduction a less risky affair.

Safety of Alibaba

Truth be told, the internet is filled with scammers and traders with malicious motives—-and Alibaba is not safe from them. After all, any manner of trading has accompanied risk, whatever platform you tend to use. The fact that products and money changes hands multiple times increases the risks of acquiring defective or fake products.

However, the administration of Alibaba has placed security measures to protect any transactions done within the site. They also have protocols that determine the legality of the building materials supplier and show if they’re properly registered. Alibaba has also a feature wherein you can report a seller who you think is fraudulent in character.

In general, finding a building materials supplier or manufacturers in Alibaba is a relatively secure endeavor. It can be in fact, an enjoyable and profitable experience.

Here are some guidelines to follow once you decided to do some trading on Alibaba.

Guidelines When Trading On Alibaba

One can check if a trader is a Gold member through the “supplier details” section. Alibaba’s Gold membership is quite expensive. This is purposely done to shun away scammers and dishonest traders. Obtaining a membership also requires in-depth scrutiny of the business, a verification system, and maintaining a credible track record.

In short, there’s much to lose and less to gain if you’re a scammer with a Gold status on the platform. Another tip is to check the building materials company’s gold status in conjunction with the number of years they have been on the platform. The longer they have been on the platform more like indicate they are trustworthy and safe to deal with.

There are a lot of product deals out there that seem to be too good to be true. Branded items are primary examples of this. Brands like Samsung, Apple, Disney, Sony, and so on do not allow their products to be sold in volumes. If you encounter deals like this, it is more likely to be counterfeit or a scam. Even Chinese brands with this kind of offers may be fake too.

When looking for building materials suppliers in China, try to compare their prices and see if they are capable to serve your needs and check the quality of their wholesale building materials.

Trade Shows

Trade shows, also called trade exhibits (Expo) or trade fairs are organized by entities from a specific industry to demonstrate the latest products and services, check out trends of rivals and in the industry itself, and meet up with potential partners and customers.

Trade shows that are done here in the US or abroad are rich sources of wholesale building materials suppliers and manufacturers. A lot of companies hailing from China actually join these trade shows hoping to meet new prospects, if not partners to conduct businesses with.

On the other hand, entrepreneurs from the US make their way to China to join and experience the biggest gathering of traders in the world —the Canton Fair.

Canton Fair

The China Import and Export Fair, commonly known as Canton Fair boasts to be the biggest and broadest trade showcase on the planet. The trade fair is held in the China Import and Export Complex in Guangzhou, China twice a year and consistently holds the biggest attendance of any trade-related event.

An average of 20,000 vendors and 200,000 buyers are expected to be present during the 3-phase affair. The phases are implemented as a classification of the products to be showcased during a certain period of time.

The Canton Fair of 2019 has already been announced as well as the products to be exhibited during each phase. The products mentioned in this guide belong to the Building and Decorative Materials which are listed under Phase One.

Building Materials

• General Building Materials, Metal Building Materials, Chemical Industry Building Materials, Glass Building Materials, Cement Products, Fireproof Materials, Thermal Insulation Materials
• Coatings/Chemistry: Wall Surface/Waterproof/Floor Coatings, Coating Auxiliary, Coating Packaging Materials, Dry-mixed Mortar, Adhesives, Admixture, Auxiliary, Building Adhesives, Adhesive Tapes, Caulking Compound, Anti-rust Materials, Waterproof Building Materials, Waterproof Additives, Anti-leakage Materials, Waterproof Technologies, and Related Equipment.
• Pipe Fittings
• Construction Hardware

Decoration Materials

• Tiles: Wall Tiles, Floor Tiles, Tiles for Decoration
• Wood Floor: Solid Wood Floor, Solid Wood Compound Floor, Laminate Wood Floor, Softwood Floor, Bamboo Floor
• Ceiling/Curtain Wall/Wallpaper and Indoor Decorations: Ceiling, Drop Ceiling, Wallpaper, Aluminum Sheets/ Lead Sheets/Point Supported/Unit/Metal Curtain Wall, Curtain Wall fittings and Processing Equipment, Sunshine Board, Gypsum Products, Steel Structures
• Doors & Windows: Wood Doors, Plastic Steel/ Aluminum Alloy/Steel Doors and Windows; Various Auto Doors, Door Control Systems and Fittings, Electronic Door Systems
• Decorative Hardware, Doors, and Windows Hardware, Hardware Fittings, Iron Craft Products
• Stone Materials: Stone Floorings, Stones for Horticulture, Special-shaped Stones, Stone Materials, Stones; Man-made Stone Decoration Materials
• Glass: Artistic Glass, Building/Decorative Glass

Kitchen Equipment: Kitchen Units, Cabinets, Washing Basins, Kitchen Hangs

Sanitary and Bathroom Equipment

Sanitary Ceramics, Bathroom Units, Steam Rooms, Shower Relevant, Taps, Bathroom Hardware & Fittings, Bathroom Mirrors, Bathroom Furniture, Water Heaters, Bathroom Heaters, Bathroom Cabinets, Partitions, Swimming Pool’s Equipment

Note: There are a lot of other huge and attractive trade fairs for various industries held at various places and dates in China all year round. If you are interested to learn more about them, send us a message and we’ll gladly feature them in our future content.

Trade Shows in the US

The US has also its share of trade shows and events where the best and brightest companies, entrepreneurs, industry partners, and customers from a specific industry meet for various reasons and purposes. Big events like the NAHB IBS and KBS presented below, are typical examples of how the players in the construction industry meet up to exchange ideas, build networks, and provide a one-stop shop for customers.

NAHB International Builders’ Show®

The NAHB International Builders’ Show® (IBS) is held annually and is the largest exhibit of the latest in technology and construction industry. The multi-day event features a lot of activities that target different demographics. Attendees have also a multitude of reasons ranging from learning from the pros, developing new skills sets, making business, and widening their networks.

Their activity highlights are usually innovative and tend to send ripples across industries. Hands-on workshops led by the top industry leaders are very popular as the atmosphere is always expected to be entertaining and filled with passion.

The 2019 IBS will showcase the latest products from over 1,500 top manufacturers and suppliers from across the globe.

A lot of booths that feature wholesale building materials can be found during the event. Buyers can directly engage with manufacturers and check out new products coming out straight from the factories. One can talk and deal directly with a building materials supplier and close a deal on site.

A couple of disadvantages may emerge if one is trying to find a very niche building materials company in this event. The choices that you get or are offered may be somewhat limited. Not all the best options are available and some specific materials commonly used in the home building can’t be found here.

The Kitchen & Bath Industry Show (KBIS)

The KBIS is a trade show dedicated to all aspects of kitchen and bath design—the largest in North America. This is the event for those who are looking for wholesale building materials to be used in kitchen and bathroom designs.

The exhibit area is filled with the latest products and designs from over 600 leading brands. This very niche trade fair is the perfect destination for attendees and exhibitors to widen their network, exchange ideas and showcase their kitchen and bathroom-related businesses. This is the absolute place to interact with building materials suppliers and get information on the best deals available.

Wholesale Market

The collection of building materials suppliers in China is absolutely mind-blowing. Just by checking the suppliers’ directory, one can easily say that production of various products, particularly wholesale building materials, all are compartmentalized by the city. One city serves as a cluster in the production of ceramic and non-ceramic sanitary wares while another city is filled with building materials suppliers of kitchen products and accessories.

Now here’s where the real fun begins. There are certain cities in China like Guangzhou, Foshan, and Shenzhen. The trio of cities constitutes the majority of the Pearl River Delta Economic Zone, which serves as the main market in the manufacturing and supply of wholesale building materials alongside other industries.

Guangdong Province is the central hub for manufacturing wholesale building materials, particularly tiles and sanitary wares. Hundreds to thousands of businessmen, foreign and local, flock the cities of Nan An, Kai Ping, Chaozhou, and Foshan on a daily basis to procure products to be sent to other parts of the country and the world.

They have even entire malls dedicated to showcasing one single industry or a specific line of products. That’s one-stop shopping for you.

Here are some of the sites that offer a wide range of product choices as well as the perfect locations to find a building materials supplier:

Foshan Huayi Decoration Materials Market

Located at Jianyuan Road the biggest market for wholesale building materials offers a wide range of choices. Decorative materials like doors, window, partition, floor, lock, wallpaper, smallpox chandeliers, lamps, and other items needed for construction and renovation can easily be found in Foshan Huayi Decorations Materials Market.

Casa Ceramics and Sanitary Wares Mall

Considered to be the most popular market for building materials, Casa Mall is a comprehensive trade procurement hub for products such as:

• architectural ceramics
• sanitary ceramics
• leisure sanitary ware
• hardware and water accessories

Most medium to high-end brands can be found in Casa Mall. Regular exchanges between importers and exporters also happen here. This is a nice spot to find a good building materials supplier if you ever need one.

Guangzhou Wuzhou City Deco Park

All kinds of furniture and wholesale building materials can be found here. The area is divided into two sections. One section displays high-end brands and those products with the highest quality while the other serves as the display area of mid-range brands.

China Ceramics City

China Ceramic City lives up to its name. This 53,000-square meter building houses more than 140 domestic and foreign well-known brands, especially in sanitary ceramic products. The items displayed here are straight out of the factories. This is the place to go if you are seeking for wholesale building materials for your business.

AnHua Decoration Material Center

The Guangzhou AnHua Decoration Material Center covers over 60,000 square meters and offers more than 1,000 booths of decoration materials that is pretty much extensive in variety.

Products on the site range from:

• lighting
• plug
• socket
• flooring
• wooden doors
• Aluminum windows

• kitchen
• wardrobe
• walls
• ceiling
• sanitary wares

The center is located conveniently making transportation to the site easy. The choices for home and commercial space materials priced at both ranges of the spectrum are readily available.

Wuzhou Decorated World

The modernization of Guangzhou and China, in general, owe the nation’s progress to the reform and opening up policy. The widely popular Canton Fair is held at this location, making it a grand stage for global trading. The variety of products found here are so extensive that if you’re looking for construction materials, there’s more likely a building materials company agent or booth waiting at all directions.

The very definition of wholesale is practically applied in transactions done in these locations.

Guangdong Decoration Material Market

Arguably the largest display of all kinds of decoration material, the Guangdong Decoration Material Market is considered a paradise for any building materials supplier. The one million square meter area market houses at least a thousand booths. If you want an example of what a global trade and commerce center looks like—this is it.

Wholesale buyers, entrepreneurs, and building materials suppliers in China and from countries around the world converge here.

Sunlink Lighting and Kitchen Cabinet City

One can find home and office decors and materials here. The choices available here is so varied that any style or design for both the interior and exterior settings can surely find something in here. From indoor and outdoor lighting to kitchen materials to ceramic wares, buyers from all corners of the world flock to this 50,000 square area wholesale building materials hub to find some business and trading opportunities.

Wholesale Market Pros and Cons

Wholesale markets are great avenues for a building materials company to showcase its products. On the other hand, traders, suppliers, and consumers find these locations to be great sources of business opportunities and cost-saving procurement hubs. In short, both B2C and B2B industries benefit from wholesale showrooms like these.

However, there may be also some downsides for some who are looking for wholesale building products that require some customization and other bespoke types of situations.

Purchase through Broker (or sometimes ASA sourcing agent)

Most first timers might actually scoff at the suggestion of hiring a broker or ASA sourcing agent to help them in dealing with building materials suppliers in China. The stories of fraud and scams are reasons enough why such necessity is imperative.

A broker is so much more than a middleman when it comes to international trading. It is essentially your supply chain manager in China.

Product compliance, quality control, product inspection, communication and language barriers, among others are the primary tasks of a sourcing agent. This is an entire supply chain management involved when importing from China or outsourcing wholesale building materials manufacturing to China.

Assessing the Capabilities of the Building Materials Company

One idea that can surely help in the decision-making when choosing for the suitable building materials company is assessing its capabilities. Determine if this building materials supplier is capable of meeting your demands in terms of production, quantity, quality, and turnaround time.

The following are tips and steps that can help give buyers a clear picture of the capabilities of the building materials company they are dealing with:

Ascertain the scope of the building materials company’s business

By doing this, it can be concluded if the company is a manufacturer or just a middle-man. The variety of products and industries that they serve can also say things about their business.

Delve into the public record of the building materials company

Public records of companies from China are duly listed on their AIC (Administration for Industry and Commerce) websites. The sites are available per locality (province and major city).

Information that is readily available from AIC sites are the following:

Identify the building materials company’s registered capital

This item can be found in the business license—also on AIC sites’ information list—of the building materials company. The registered capital will show if the company is a trader or a legitimate manufacturer. The company’s registered capital will also show its capabilities in terms of production.

Check the quality management system of the building materials company

Getting wholesale building materials at a bargain price is one thing while ensuring that such products are of the highest quality is another story.

The world-class manufacturers from China usually implement a quality management system that adheres to the standards set by ISO 9001. This step will help buyers have a notion about the quality of products they should expect as well as filter manufacturers from traders.

Looking at these records will be more than a bit of a task. However, there are agents who can do this if buyers do not have the abilities to translate and interpret as all documents are written in Chinese.

To ensure the quality of the merchandise, it is also advised to have a quality inspector (See Broker/ ASA sourcing above) to check for substandard or damaged products.

RFQ / Request For Quotation

Once you find the building materials supplier that fits your needs, the next thing to do is ask for an RFQ (Request for Quotation). This will make the succeeding negotiation and discussions much smoother. An RFQ makes everything well-defined and quantifiable. The following information should be included in the discussion with the supplier:

Minimum Order Quantity (MOQ)

Sample pricing
It is more likely a sample order will initially be conducted prior to ordering in bulk. Some suppliers may provide a discounted price for samples while others may send them for free.

Production pricing
The product pricing is the meat of the conversation. Pricing based on different quantities to get a clear picture of the costs and discounts once an order pushes through.

Turnaround time

Payment terms
While there are suppliers who may agree with changes in the terms of paying down the line; most of them would ask their buyers to pay for the full order upfront, which may be quite heavy for startups.

How to Ship Building Materials from China to the USA?

There may be other methods of shipping wholesale building materials from one continent to another but if you are concerned about profit and costings, the only feasible method of bringing large volumes of merchandise from China to the US would be via sea freight or ocean shipping.

Major Ports in China and US

Ocean freight shipping is the only viable, inexpensive option for large volume shipping of wholesale building materials from China to the USA. If the lead time is of least importance compared to profit and sales. Sea freight shipping is considered to be the cheapest – albeit the slowest- mode of shipping.

For those who are planning to do some shipping of wholesale building materials from China to the states, familiarization of the nearest, busiest, and largest US ports is a must. A smart building materials supplier should look for the best possible routes and port of destinations available. This is a strategic way of lowering the shipping time and consequently help in shaving off some of the costs.

The United States has about 360 commercial ports spread across the East Coast, West Coast, and the Gulf Coast.

Here are 10 Major US Ports:

Lead time

Based on our experience, the ocean freight shipping time of wholesale building materials from the other side of the world can take from 30-40 days on average (depending on the port of destination) for the door to door shipments.

Sea freight carriers usually practice this—purposely prolong the transit time—to save on fuel.

Traders must be reminded that sea freight shipping also requires additional preparation time of documents for both countries. Importers using sea freight shipping are also required to secure an ISF bond in addition to the single entry bond.

Other factors that add to the extending of sea freight lead times are port congestion, customs delays, and poor weather conditions.

Take note that freight forwarders along with sourcing agents, will always find ways to keep the steps to a minimum and as efficiently as possible to reduce the shipping time from port to port.

Sea freight carriers usually practice this—purposely prolong the transit time—to save on fuel.

Traders must be reminded that sea freight shipping also requires additional preparation time of documents for both countries. Importers using sea freight shipping are also required to secure an ISF bond in addition to the single entry bond.

Other factors that add to the extending of sea freight lead times are port congestion, customs delays, and poor weather conditions.

Take note that freight forwarders along with sourcing agents, will always find ways to keep the steps to a minimum and as efficiently as possible to reduce the shipping time from port to port.

Examples of Sea Freight Shipping Time from China to USA ports

Here are some examples of shipping time from China to the US:

Sea Freight Rate Calculation

In the calculation of ocean rate, several factors may add up before the landed cost is determined. In sea freight shipping, the classification of the cargo has an impact on the shipping of those wholesale building materials.

There are sets of guidelines of classification used in the calculation of shipping cost.

Container types and sizes are primary considerations to calculate when it comes to sea freight shipping. A large chunk of the cost involved in shipping wholesale building materials from the other side of the globe involves the weight, distance, the shipment time, and the quality/classification of the cargo.

Here are the factors that affect sea freight rate calculation:

The Cargo

Knowing what you’re shipping what you are shipping is the most important factor to understand. It is a fact that the cargo shipped varies greatly from one shipper to another. What is crucial here is you know what you are shipping—legally.

The cargo is classified based on an international set of rules (Read HS Code below). It is advisable to use the services of a freight forwarder. This entity can help determine if the goods are valid for shipping and if they may require additional paperwork.

The shipping rates are very volatile and may change depending on the season and availability of shipping vessels. The building materials supplier should make sure the information about the cargo is accurate. It is imperative to get the most accurate freight route and optimize the shipping time across borders.

Shipment Weight and Size

Cargo transported via ocean shipping is measured by volume (cubic meters) and has a corresponding charge rate. Take note that extremely heavy shipment can affect the pricing.

Coordinate with a freight forwarder as well as with the building materials company to be able to consolidate information of the freight weight. The freight forwarder will check if there will be additional charges after liaising with the carrier. This is helpful especially for regular international traders as the shipping from China to US cost can be determined much sooner.

Shipment Time

The wholesale building materials’ shipment time is a factor that should be planned and dealt with the way ahead of time. The art of haggling over spot rates can be unreliable and frustrating at times. Spot rates may change drastically and can affect the costs of the entire shipping process.

Avoid such situations by having your agent get hold of the latest freight rate quotes then determine the best pricing. Always check for the latest rates for your chosen mode of shipment.

Make a reservation/payment 30 days prior to your departure. The freight rate quotes are usually good for about a month before new changes are made. However, there may be instances freight rates change as often as weeks or days.

Location and Destination

Of course, it is essential to know where the cargo is being shipped to and from. Other services like port-to-port, port-to-door, and door-to-door can also alter the shipment costs.

As an added note, we advise to be cautious and never be too assuming when it comes to certain terms used in the shipment of wholesale building materials. Certain terms such as total ocean cost do not imply that it is the total amount you are to pay.

There will be more fees, taxes, and other costs needed to be shelled out once the shipment arrives at the port of destination. See landed cost below.

Customs Clearance and Import Duty and Tax from China to the US

One may find really very good deals on products, especially wholesale building materials coming out of China. However, these prices more likely do not include tariffs and taxes, which would weigh heavy on the total cost. Getting to know of these additional costs is an important step in learning how to import building materials from China.

Take note that it is the importer and not the building materials supplier who is responsible for the payments of the following fees unless agreed otherwise.

Tax and Tariff

Taxes and tariff rates vary from country to country. The United States use the FOB in the calculation. These fees are generally collected once the shipment of wholesale building materials arrives at the port of destination and during the process of customs clearance acquisition.

Import Customs Duties

Import duty is a form of tax collected by the state on imports and some exports. The country’s customs is the sole authority that performs the calculation and collection. The due amount is usually based on the product’s value.

There are various purposes why a country’s government impost import customs duty. Nevertheless, any product going in the country would require the importer to pay some fees.

A common practice in the shipping industry is having the import duty levied once the imported products enter the country. This can be done by the shipper, the buyer, a customs broker, or a freight forwarder.

It is common for the buyer to absorb these fees unless there’s an agreement between the seller that states otherwise prior to shipping from China to the US. Moreover, it is impossible to have the building materials supplier from China to confirm the duties and the taxes associated with the products.

Thus, the responsibility to pay any duty owed on an import falls on the importer from the US. The tariff amount for a certain product is determined through the harmonized tariff schedule (HS Code system).

US Customs Clearance Process

Customs clearance is defined as the act of passing goods through customs before they can leave or enter the country. A document duly signed by customs representatives is given to the shipper to affirm the goods is “cleared” to be shipped.

Every port in every country requires every shipment to undergo customs clearance. The whole process may be a hassle if one doesn’t know how it is done. There are companies and individuals, however, who can handle the nuances of the process and help every shipment go smoothly. They are called customs brokers. Other entities like freight forwarders and outsource agents are also capable of handling the US Customs Clearance process.

Customs Bond

Also called customs surety bond, the customs bond is a contract between the importer and the customs that acknowledges the presence of a specific obligation attached to the importation of goods and guarantees that such obligation will be paid. In short, it is a guarantee that payment will be made.

All imported merchandise entering the country for commercial purposes requires a customs bond before it is allowed to enter. A customs bond can be obtained within 24-36 hours, assuming a valid power of attorney is also in place.

Customs bonds are either classified as a single entry or continuous. The continuous customs bond has a validity of one year and includes 10% of duties, tax, and other fees. Pricing depends on the value and type of the goods involved.

US HTS Code and Import Duty and Tax from China to the US

The Harmonized Tariff Schedule of the United States is used for all types of merchandise shipped into the country. The HTS is based on the International Harmonized System, a nomenclature for all goods traded in the international market.

US HS Code

HS Codes, also called tariff codes, customs codes, harmonized codes, import/export codes, and Harmonized Commodity Description and Coding System codes are used globally as a universal language for classifying products.

With every product classification number comes a corresponding HS Code Classification number, HS Code Description, and import duty.

The first 6 digits of the HS code number corresponds to its main category, which is also the international code.

The remaining digits on the right stand for the country’s (in this case the US’) sub-division.

Each product has a corresponding 6-10 digit classification number.

Knowing the correct codes for the products you will be importing is very important.

You can find the codes for your products through this HS Tool

Here is an example of one of the wholesale building materials we’ve used the HS tool on.

Using the HS Code Search Tool

1. Use generic descriptions when searching for your products. Use “tile” instead of ceramic tile.
2. Select the country for HS Code search.
3. Place the amount per item plus the shipping fees.

Landed cost

Landed cost is defined as the total cost of a shipment the importer/buyer needs to pay. Every fee, clearance, tariff, and whatnot are included in the landed cost.

The formula of landed cost looks like this:

Landed Cost = EXW/FOB + To-Door Freight + Customs Fees

The following is a breakdown of responsibilities and accountabilities of landed cost:

• EXW/FOB to be paid to the seller/supplier
• To-Door Freight to be paid to the freight forwarder
• Customs Fees to be paid to the customs (via customs broker)

In an importation transaction, the following items make up for the landed cost:

• Transportation to Port of Loading
• Bill of Lading
• Export customs declaration
• Loading port fees
• Ocean freight charge
• Insurance
• Destination port fees
• Import Security Filing (ISF)
• ISF Bond
• Entry Bond

• Import customs clearance
• Customs duty/tax
• Entry and messenger fees
• Merchandise processing fees
• Harbor maintenance fees
• Duties based on goods
• Transportation from the Port of Destination

The sheer amount of items listed above can keep your head spinning indefinitely. However, there’s no need to get too overwhelmed and frustrated though. There are generally two ways you can calculate for your total landed cost and overcome these nuances.

1. Conduct some research.

The freight forwarder and the outsource agent do these things for a living and make sure you’ll fully understand the concept as well as guide you find ways to keep the shipping cost of wholesale building materials from China to the US to a minimum.

Safety Regulation, Compliance Testing, and Certificates

The US government strictly require that any new building construction or major renovation undergo prudent regulation to ensure the safety of the public from hazardous materials and substandard quality of construction. Certain specifications, policies, regulations, and standards have been placed and require the building developers to have their site and materials undergo compliance testing.

There are a lot of federal and state regulations in the United States that importers, exporters and home builders should be aware of. Some state laws demand much stiffer requirements and heavier penalties compared to federal laws.

For this guide, let us focus on the agencies that monitor the quality of construction materials used and structures’ integrity as well as regulations that are followed in the state of California.

International Building Code

This model building code developed by the International Code Council (ICC) has provisions that are intended to protect public health and safety. The code’s provisions as well aim to avoid unnecessary costs and preference for using specific materials as well as specific methods of construction.

The code is applied to all structures and has references to other codes such as the International Plumbing Code, National Electric Code, and the National Fire Association. A large portion of the International Building code deals with the prevention of fire.

Its difference from the International Fire Code is its focus is primarily on the construction and design of buildings where such structures are recommended to be built using fire-resistant materials.

Here’s an overview of the chapters and topics covered by the International Building Code:

• Building occupancy classifications
• Building heights and areas
• Interior finishes
• Foundation, wall, and roof construction
• Fire protection systems (sprinkler system requirements and design)

• Materials used in construction
• Elevators and escalators
• Already existing structures
• Means of egress

International Fire Code

The International Fire Code is a model code that presents minimum safety guidelines for new and existing structures. The IFC covers the protection of life, limitation of potential hazards, prevention and protection from fire.

Non-compliance is deemed to be a violation and may result in fines or worse, revocation of business licenses and imprisonment.

Energy Codes

Energy codes have been implemented for the purpose of producing and using of products and materials that are energy-efficient. These codes set the standards of plastic insulating materials that are used in residential and commercial construction and renovation.

Here are the two primary building energy codes applied to multiple states and localities across the US:

The United States Environmental Protection Agency

The EPA is an agency of the federal government with the mission of protecting human and environmental health. The agency is responsible for regulating the manufacturing, processing, distribution, and use of chemicals and other pollutants.

Topics covered by regulations and laws enforced by the EPA include:

• Stormwater runoff
• Dredged and fill material/waters
• Solid and hazardous wastes
• Spill reporting
• Hazardous substances
• PCB wastes
• Air quality

• Asbestos
• Threatened or endangered species
• Historic properties
• Green building

Fines, sanctions, and other procedures are used to enforce the EPA’s programs.

Testing Related to Polyurethane

Polyurethane is a hybrid compound that is widely used by technically all types of industries. This compound exhibits an almost impervious resistance to chemical exposure, abrasion, and corrosion.

A poly coating that is manufactured well poses no danger to humans. However, in its uncured state, the inert components of this compound may lead to a lot of health issues. Thus, certain regulations and standards have been set to ensure that proper manufacturing protocols are followed.

The procedures below are examples of compliance tests that are required for polyurethane:

• Physical Test Methods and Specifications for Polyurethane Foam (Rigid and Flexible)
• Polyurethane Raw Materials Test Methods
• R-Value Test Methods
• Thermoplastic Polyurethane Specifications

Note: We advise to research on the federal and state laws that are set in your area. Make sure to identify the quality and chemical composition requirements of wholesale building materials before pursuing and closing a partnership with a chosen building materials company.

4. Common problems and Challenging importing Building Materials from China to the US

4.1 Quality and Quantity Issue
4.2 Communication issue and the Language Barrier
4.3 Long Lead time and Delayed Shipment
4.4 IP violation

Importing wholesale building materials from China is no walk in the park. The reality can be far worse than one can expect. Some problems may arise that could hamper the flow of every transaction involved in the importation of wholesale building materials from China to the US.

The following are some problems that may arise when dealing with building materials suppliers in China as well as some possible steps to solve or prevent such problems from occurring in the future.

Quality and Quantity Issue

There may be instances where the number of units that arrive on your doorstep wouldn’t match with your order. Receiving products with poor quality and incorrect specifications could also be possible. When looking at high-volume shipments, things like these happen regularly.

Such problems can be avoided first and foremost, by establishing a good relationship with your building materials supplier. There’s a chance the supplier will replace the damaged or units that are of pure quality just as an act of goodwill. A relationship built with trust would also ensure the products are inspected prior to shipment.

It is best to find a building materials company that has an established quality control system. Deal with manufacturers and suppliers that performs product inspection and testing, has proven systems of order consolidation and quality assurance.

Communication Issue and Language Barrier

Problems in communication are common in any international type of trading. Dealings with building materials supplier in China may also encounter these issues. Don’t be surprised to encounter a building materials company with poor to non-existent customer services.

Just be informed though, that speaking English is not a priority in China, even in the course of international trading. Documentation and email written in English can easily be discarded or ignored.

The solutions to the language barrier problem are fairly simple. Find building materials suppliers who have staff that can communicate in English—which happens rarely.

Better yet, hire a bilingual broker who can bridge the gap in the communication process. It is also nice to have someone on your side who can understand what the locals are saying in order to get the best deals.

It is best to find a building materials company that has an established quality control system. Deal with manufacturers and suppliers that performs product inspection and testing, has proven systems of order consolidation and quality assurance.

Long Lead time and Delayed Shipment

Timing is essential to maximize the shipment of your wholesale building materials. Keeping tab of the schedule of packaging, loading, transit, and any other steps that require human intervention are important when importing cargo from China.

The Chinese follow their holidays strictly and religiously. It is part of their tradition and culture. Most factories are closed for long periods due to their observance of holidays. Workers, especially those living in the rural areas of the country tend to spend time with their family during these periods, halting any production.

It is wise to plan ahead of time. Make sure the key steps in the importation process will not fall on holidays. This can help prevent any delay in shipping from China to the US.

Tip: We strongly advise choosing a fast ship (shorter lead times). Check the number of stopovers in the ship’s schedule. Avoid ships with a lot of stops. Some importers don’t include the carrier’s schedule in their planning, a real surprise, indeed.

IP violation

In the industries where Original Equipment (OEM) is prevalent, Intellectual Property (IP) protection will always be part of the contract between parties. This is true when dealing with manufacturers from China as well as to other countries.

When parties come to an OEM agreement, the manufacturer acknowledges that its product will be used in the buyer’s end-product. This is great when you are on the spot where you have all the supporting documents that allow you to use and trade a product like your own.

A problem may arise in situations where you may end up with a product that you can’t legally sell due to IP restrictions. On the other hand, your product may not have fulfilled the federal and state regulations in the US—an ordeal that is perilous on its own.

Here are tips on how to avoid such unwanted situations related to IP violation.

Conclusion

China has transformed itself into a behemoth economy-wise—and the world along with it. The impact of China on the world’s economy is undeniable. Almost all, if not all products used in the development of global commerce can be obtained from China at the cheapest prices. Take the technology and construction industries as examples: China is their primary supplier and there’s no sign it will be changing in the next decade or so.

A wise trader will always take this situation as an opportunity for further expansion and profit. China is now among the international leaders in terms of economic growth. Everything happening now in the development sector can be traced to the Tiger of Asia. This is the best situation for international traders here and abroad.

Leelinesourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to see more, you can visit leelinesourcing.com.

IP Protection: NDA or NNN?

Most importers have many of the same concerns when sourcing in China, one being the ability to protect their IP (Intellectual Property). It’s important for businesses to protect their homegrown ideas because it sets them apart from competitors, and can be used as a vital source of revenue. So how does one go about protecting what they create? This blog will look at the pros and cons of issuing an NDA agreement (Non-Disclosure Agreement) or NNN agreement (Non-use, Non-disclosure, Non-circumvention), and which one can better serve you and your China sourcing team.

NDA agreements focus on preventing trade secrets from being revealed to the public. This works well in the USA. However, importers are concerned about protecting their IP in China, and these agreements—often written in English and subject to US law—do not work well in China. The issue here is that in China, the risk doesn’t come from disclosure to the public. The risk is Chinese factories could use one’s IP information for their own benefit.

So, as per this great article from the China Law Blog, China NNN agreements, NNN agreements would be the better way to protect IP in China, and here’s why.

This is what the 3Ns stand for:

• Non-use: This states that the factory cannot use your information or ideas to compete with you. This does not necessarily protect your product as intellectual property, copyright or patent, etc., but it protects you in that if the factory should use your information, they in breach of contract with you—and this is not recognized as an IP issue.
• Non-disclosure: This protects you from having your ideas made public, which isn’t a huge concern because factories usually don’t want others, but themselves, to benefit from your information.For example, it’s common for an extended family to own a group of businesses, but consider them all the same entity for disclosure purposes. With that said, factories will disclose your information to someone in its “group”. This way they are not in breach of contract for “non-disclosure”, and they aren’t in breach of contract for “non-use” as they didn’t use your information themselves.

  Another issue is that some factories use subcontractors, and assert they need to disclose to them to provide pricing for your product.

  Then there are SOEs—are they all in competition with one another? Maybe not. Therefore, it’s common that information held by one SOE should be shared with another SOE. This non-disclosure would help bar against that.

• Non-circumvention: Your suppliers and factories are pretty well aware that you’re buying the product at the China cost, and selling them to the end consumer with an added margin. This would prevent them from selling YOUR products to YOUR customers for less than you.

On top of that, you would want your NNN agreement to be enforceable in China. So, it should be written in Chinese—Chinese law should be the governing law—and Chinese courts should have jurisdiction over the defendant.

The main objective of these agreements is to prevent problems. If a manufacturer signs a document that is clearly not enforceable, it’s useless. But if they sign an agreement that promises all sorts of problems, then they will think twice. So, it helps to have the NNN agreement written in such a way that Chinese factories fear the consequences of breaching this contract, like enforcing damages for each act.

Following these guidelines will help to reduce the likelihood of having to go to court. For these reasons, the NNN is the way to go.  It is a bit more involved and cumbersome, but it affords much better protection.

How do you protect your IP in China? Share your methods with us in the comments below.

Leeline sourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to see more, you can visit our website.

Private label solution

From 1997 to 2005, the sales of private label brands grew at double the rate of national brands, according to a 2008 report by the global business advisory firm AlixPartners. Private label products are on average about 30 percent lower in price than national brands.

Private labels offer retailers control over product factors such as pricing, size, package design, production and distribution. Retailers can develop and implement innovative ideas to gain market share over national brands. This includes the ability to make quick adjustments to products based on customer’s changing preferences. “The food industry is seeing a heated battle for market share,” says David Garfield, managing director and head of AlixPartners’ Consumer Product Practice. According to an AlixPartners 2011 report, this battle will continue as consumers choose value over brand loyalty.

Add Your Private Label on Product & Packaging

Enhancing Your Brand

One of the biggest benefits that come with using high-quality packaging or your products is that it can help to reaffirm your brand to the general public. You need to make sure that the company you hire can provide you with the high quality and aesthetically pleasing packaging for your products. The better that your products look on the shelf, the faster you will be able to sell them. Make sure that you take the time to look at designs and get an idea of the type of design that you want.

Protect Your Product

Another benefit of using high-quality packaging is that it will help to offer protection to the product. The last thing that you want to do is send your product out to market without the proper protection. Talk with the company doing your packaging to see what they can offer you in the way of protection. The more you are able to find out about what they can do for you, the easier it will be on you to choose the right packaging for your products. Make sure that you take your time and weigh all of your options before making a decision.

Finding the right supplier for your packaging is vital, which is why you will need to do the proper amount of research to choose the right one.

Leeline Sourcing provide Private Label support services from product research and development, product design, packaging, through to product branding and till your ready to launch a finished product! We can help take you from Idea to Market – your One Link–One Solution to having your own brand! If you want to know more, you can follow us.

 

Wholesale Diaper Bags from China: The Complete Guide 2018

We have received many new customers for importing diaper bags from China in the last two years. Many of them don’t know how to import a diaper bag from China. They encounter a lot of problems when purchasing a diaper bag. This article helps customers who want to wholesale diaper bag in China. It also helps people who want to start a diaper bag business.

We list the few points that importers are most concerned about:

• Different types of diaper bag you can import from China.
• What is the wholesale price for diaper bags in China?
• The shipping cost for importing diaper bags from China.
• How to customize diaper bags?
• Quality issues you should know about diaper bags.
• How to find diaper bag manufacturers/Suppliers in China?
• Where are diaper bag manufacturers located in China?

Please note that we will not disclose our client’s design or product information. All the product photos are from Google and Amazon.

1. Different Types of Diaper Bag You Can Import from China

Diaper bookbag/backpack
Features: Large capacity, with many compartments, great for travel

Diaper bag tote/purse
Features: Simple and stylish, Suitable for taking the baby to go shopping. And it’s easy to clean

Stroller diaper bag Diaper pouch
Features: Used for hanging on a stroller, functional and stylish. Be designed for modern parents, with classic needs.

Diaper bag tote/purse
Features: Simple and stylish, Suitable for taking the baby to go shopping. And it’s easy to clean

Sling diaper bag
Features: Small and lightweight, more suitable for dad, easy to carry small things and fashion style.

Hip diaper bags/Messenger Bag
Features: Outdoor lightweight material, streamlined design, easy to organize and carry. Unisex stylish and spacious design

There are some diaper bag reviews, which may help you！

2. What is The Wholesale Price for Diaper Bag in China?

There is no huge difference in the price of different diaper bags. Generally, the price of a diaper bag is around $10-$20USD. The price range of the following diaper bags that our customers often order is $10-$13USD.

High-quality diaper bags may include a complex production process. They offer better functionality. They feature a high-quality fabric, like leather or special outdoor materials.

For example, in January of this year, one of my customers who specialize in branded products customized a high-quality package. It has a large number of sorting layers that can be used to classify a variety of baby products. Moreover, he selected the light, wear-resistant and waterproof fabric. The cost in total is around 20USD.

Since last year, our company has been purchasing diaper bags for our customers in various countries. We found that the same style diaper bags from the same supplier costs 10% more in 2018 than in 2017. This is because raw materials and labor costs are higher in 2018. So don’t be surprised if you find that suppliers are more expensive this year than the last year.

3. The Shipping Cost for Importing Diaper Bags from China

Our company previously had helped many customers source lots of diaper bags. Although the different styles of diaper bags vary in size and weight, there is not much difference in the shipping cost. So, I take a diaper bag that we help our customers purchase before as an example.

Usually, 500 diaper bags are about 400KG, 3.5CBM. Their dimensional weight is about 670KG. (For some lighter weight, but larger volume goods, express/air freight will charge according to dimensional weight. To know more about dimensional weight, click here)

3.1. The cost for shipping by express/air freight

The following table can help you roughly calculating the shipping cost of each diaper bag to different countries by express delivery.

(Please note that different courier companies have different prices. The express price may change at any time in a year. The price in the table below is just for your reference.)

3.2. Cost for shipping by sea freight

Sea freight is more complicated. You need to transport goods from China to your warehouse in your country. It involves Chinese export process, shipping on the sea, the import process in your country, customs clearance, and domestic shipping to your warehouse. Better find a professional freight forwarder that will help you handle the shipment from China to your warehouse.

Shipping a full container load is cheaper (FCL). But many of the importers’ first purchase in China is not enough for one container. Some just purchase thousands of packages each time. So, they usually ship less than container load (LCL).

I will give you some shipping LCL prices for all included cost as a reference.

(This price is for goods at 3-5 CBM. If the number of goods is more than 5 CBM, the price is cheaper.)

4. How to Customize the Diaper Bag?

In fact, most of the importers select diaper bags from the ones already produced by the factory. However, more successful and experienced importers will customize the diaper bag by their own design. They make your personalized diaper bags, unique from many of your competitors.

Importers usually have these changes on the diaper bags:

• Print/embroider your own logo on the backpack. Most of the backpacks are made of canvas. You can send some good patterns to the factory and let the factory print them on the canvas material.
• You can add more multiple compartments to diaper bags.
• You can change the bottom material of the diaper bag to leather. With this, even if you put the bag on the ground often, the bottom will not get dirty. (See the following picture.)
  You can add USB line to the diaper bag and facilitate charging anywhere.

Just like the picture is shown below

Most Chinese factories have a minimum order quantity of at least 500 or 1000 units for a personalized baby diaper bag. To buy only 200 or 300 pieces, you can just get your logo printed on diaper bags. You can’t do more customization for an order of fewer than 500 pieces.

5. Quality Issues You Should Know about Diaper Bags

We have identified two primary quality issues that may arise with your diaper bags. Generally, customers ignore these issues.

The first one is the zipper part of the diaper bag, which is very easy to break during use. So, pay special attention to the texture of the zipper. You have to test it by hand and look at the metal material. Many factories use some bad zippers to save costs. A bad zipper is not smooth to pull and breaks easily after a period of use.

The other one is where the body and the strap are connected. It is easier to get off the line if it is not very strong. So when purchasing from suppliers, let them sew more lines in this area or make this part with a thicker cloth.

6. How to Find Diaper Bag Manufacturers/Suppliers in China?

6.1 Find Diaper Bags Wholesale Suppliers Online
You can find diaper bag suppliers on Alibaba, Made-in-china, global source, DHgate, Aliexpress or on an independent website on Google.

Vendors on Alibaba generally have higher requirements for MOQ, usually above $2,000. First-time buyers and those who want to buy only 100 diaper bags or less should choose DHgate or Aliexpress.

But, if you want to sell this product for long-term business, I recommend Alibaba instead of DHgate or Aliexpress. It’s because most of the suppliers on both sites are not factories. Usually, they buy products from different factories and resell them to you. So, it’s hard to guarantee that the quality of the bags you buy every time is the same.

6.2 Find Diaper Bag Manufacturers in China

If you have your own business plan and want to customize diaper bags according to your own ideas, find a reliable manufacturer. Communicating your ideas with suppliers on Alibaba is difficult. Moreover, it’s also difficult for a supplier who understands and meets your requirements.

Suppose you already have a supplier on Alibaba. But you are unsatisfied with the quality of diaper bags manufactured by your current supplier. In this case, I suggest you come to China to participate in some exhibitions. You can find some suppliers of diaper bag at the exhibition. You can communicate face-to-face with them and choose a supplier that is most suitable for you.

• In China, you can find diaper bag suppliers from these fairs:
• Canton Fair
• Yiwu Expo
• Hong Kong ExhibitionShanghai International Bag Leather Handbags Exhibition

7. Where Can You Find The Best Diaper Bag Manufacturers In China?

Our team has a lot of experience in helping foreign clients find diaper bag manufacturers in China. The majority of these manufacturers are found in Shenzhen, Guangzhou, Quanzhou Fujian, Yiwu Zhejiang, and Hebei. Each of these areas produces diaper bags with different quality and price.

If you are looking for the best quality diaper bags, then go to Guangzhou and Shenzhen. These areas contain a lot of raw materials. Therefore, manufacturers in these areas are able to manufacture diaper bags of a higher quality. However, you will have to spend more cash on your diaper bags.

Quanzhou, Fujian also has a number of diaper bag manufacturers. There isn’t much of a difference in terms of quality. The prices in Quanzhou are a bit lower than in Guangzhou. So the suppliers in Quanzhou tend to be the most cost-effective ones.

If you are looking for an affordable diaper bag, then Yiwu is the place to be. However, the quality may not satisfy you. In Yiwu, the quality of diaper bags depends on the production capacity of the factory you are buying from. Therefore, you need to learn how to distinguish the good quality from the bad one. If you do not have this kind of experience, then you should find a purchasing agent that you can trust.

We advise you to find a diaper bag supplier in the above areas. But one place you shouldn’t consider is Hebei. Though the diaper bags in Hebei are the cheapest, the traders there are not as professional as those on the East Coast. Hebei is quite inland and you may have problems communicating with most of the manufacturers there. Therefore, they may not be able to customize diaper bags according to your specific requirements.

Now It’s Your Turn
I hope this Complete Guide will help you import diaper bags from China to your country easily.

Now I’d like to hear from you:

Do you have a store online or offline?

What’s your experience of importing diaper bag from China?

Don’t you understand something in this article?

Do you have any problem running your business smoothly?

Leave a comment to let me know your issues. And, we will try our best to answer your questions and solve your issues.

Leelinesourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to see more, you can visit our website.

What we should do for Emergency in loading container

A very nice couple came from Singapore to purchase items for his project house.

They can speak Chinese and Cantonese.

For the clients like that, what we do is just following the order, product supervision, quality check and arrange shipment.

After her purchasing, we collected all order sheet from suppliers and figured out how much the volume was.

In the beginning, it showed 1*40HQ was enough. Ok, then we arranged 1*40HQ for her. Before arranging the shipment, we double checked with all suppliers and they also confirmed the volume was right.

On the day we loaded the container, some suppliers delivered the goods to our container, and it was obvious that the volume was larger than they told us before.

What should we do at that moment?

Finally, we sent all items which were easy to be broken and large like glass, decoratives and so on into the container.

Those not easy to be broken will be sent by LCL.

Clients are very satisfied with the solution.

As the clients are from Singapore, that solution was got the approval from them before we did like that.

After all, things received, clients found that there are no cushions for the outdoor furniture and contacted us.

As we did quality check before, the cushions were ready to send. But the workers forgot to put them inside the package.

Then we contacted the supplier, they admitted that and promised sent them by express. Finally, the problem was solved.

Leelinesourcing is a reliable China Sourcing Agent, it has been over 10 years experiences. If you want to see more, you can follow leelinesourcing.com.