If it’s your first time importing furniture from China, the international payment and customs clearance process might seem a bit complicated. But don’t worry! Once you understand the key points, the whole process isn’t that difficult. In this article, we’ll explain the most common trade terms (such as FOB, CIF, DDP, etc.) and the steps for customs clearance in a simple and easy-to-understand way. With this information, you’ll be better equipped to choose the right trade terms and find a reliable customs broker to handle the clearance process, ensuring that your furniture arrives smoothly and safely. Let’s make this process easier together!
As a company with 12 years of B2B experience, Homebridge has established partnerships with clients in over 35 countries worldwide. We are well-versed in the customs policies of different countries and can help customers save significantly on costs and time during the process. We've simplified all the steps so that customers only need to pay for transportation and customs duties, besides the cost of the furniture, making the furniture purchasing process much easier for you.
1.Trade Terms Applicable to Furniture Imports from China
In international trade, it is essential to clearly define the trade terms between both parties. Different payment terms not only determine the method of transportation but also affect the distribution of costs and the transfer of risk and responsibility. Only by thoroughly understanding the details of these terms can you ensure that no unexpected additional costs arise after the payment is made.
1) Common Furniture Trade Terms
Different payment terms correspond to different price quotes from Chinese companies. Many companies often attract customers with low prices but do not offer complete services.
2) Trade Terms Used by HomeBridge
HomeBridge offers both FOB and DDP payment terms, which not only meet your cost-saving needs but also help you save time. Objectively speaking, both FOB and DDP have their advantages. Under FOB, customers can find their own customs broker domestically, which helps reduce time costs, and they only need to wait for the furniture to arrive at the destination. On the other hand, with DDP, customers don't need to find a customs broker themselves, saving time and effort, and can receive the furniture right at their doorstep.
Note: Whether you choose the FOB or DDP model, HomeBridge can provide you with long-term partnering freight forwarders to reduce your costs.
3) Purchasing Process for FOB and DDP
Notes:
1. Whether you choose the FOB or DDP model, HomeBridge can provide you with long-term partnering freight forwarders to reduce your costs.
2. The $200 deposit you pay in advance will be deducted from the service fee.
3. Aside from the deposit, which can be paid via PayPal, all other fees are only accepted via T/T payment.
4. The bill of lading is used for the customer's customs broker to collect the goods at the port.
2.How to Clear Customs When Buying Furniture from China?
When you choose the FOB trade model and handle customs clearance and shipping matters yourself, you typically need to find a suitable customs broker to assist you. In addition to customs clearance fees, you will also need to pay duties; for specific costs, please refer to China Furniture Imports Explained: Shipping and Customs Duty Costs Details. Therefore, having a suitable local customs broker is crucial.
1) How to Find a Customs Broker?
- Google: Search for "Customs Broker + [City Name]" or "Customs Broker near me."
- Google My Business: Use Google to search for local customs brokers and check customer reviews and ratings, similar to a Yelp-like user feedback system.
- Trustpilot: A global business review platform where many logistics and customs brokers have customer reviews, helping you assess the quality of their services.
- Yellow Pages: An online directory where you can find local customs brokers and see relevant reviews and ratings.
- Freightos: A platform focused on international shipping, allowing you to search for and compare quotes and customer feedback from customs service providers.
- Yelp: While Yelp primarily focuses on dining and local services, you can also find reviews for logistics or customs service providers in certain areas.
2) How to Verify If a Customs Broker is Reliable?
- Understand Industry Qualifications: Ensure that the customs broker has legal customs qualifications and certifications, such as customs agency certification or AEO (Authorized Economic Operator) certification. These qualifications indicate that they meet compliance requirements and are capable of handling customs clearance matters.
- Review Customer Feedback and Recommendations: Look at customer feedback and recommendations for the customs broker, especially comments on industry platforms or social media. Understand their success stories and the types of goods they have handled to assess their credibility and professionalism.
- Consult Industry Peers: Ask friends or business partners who have previously used customs services for their recommendations. Peer suggestions are often more valuable references.
- Request Transparent Quotes: When choosing a customs broker, ask for a detailed list of fees to ensure there are no hidden costs and that the prices align with industry standards. Transparent pricing can help avoid unnecessary disputes in the future.
- Evaluate Service Scope: Determine if the customs broker can handle various types of goods and whether they provide comprehensive customs clearance services, such as document preparation, customs coordination, and duty payment.
- Communicate with the Customs Broker: Choose a customs broker that is easy to communicate with and responds promptly, ensuring they can provide timely feedback during the customs clearance process and quickly resolve any issues that arise.
- Conduct Background Checks: Verify the customs broker's background and compliance through official channels, such as checking for any negative records with customs, to ensure they are a trustworthy partner.
3) Top 10 Customs Brokers in the U.S.
3.Homebridge International Furniture Purchasing Case Studies
1) U.S. Clients
- Destination: Los Angeles, USA
- Total Value of Furniture: $30,613
- Customs Duty Costs: $3,345
- Transportation Costs: $8,432
- Total Expenses: $42,390
1. Furniture Tour: Client Visiting Furniture
2. Furniture Tour: Arranging Furniture Packing
2) Australian Clients
- Destination: Sydney, Australia
- Total Value of Furniture: $29,400
- Customs Duty Costs: $2,343
- Transportation Costs: $4,362
- Total Expenses: $36,105
1. Furniture Tour: Client Visiting Furniture
2. Furniture Tour: Arranging Furniture Packing
4.How Homebridge Helps You Save Money
1.Establish Long-Term Partnerships with Reliable Freight Forwarders: With over 12 years of B2B trade experience, we have built long-term relationships with freight forwarders in many countries, helping us secure better shipping rates for our customers.
2.Optimize Transportation Routes: Homebridge understands how to reduce shipping costs by selecting the right routes, considering different ports and destinations, which impacts both sea and land transportation costs and requires advance planning.
3.Optimize Container Space: We know how to plan container space effectively, ensuring that larger furniture items are accommodated properly.
4.Book Transportation in Advance: We plan transportation based on the customer’s required arrival time and closely monitor fluctuations in sea freight prices to secure the best shipping rate for our clients.
5.Optimize Packaging for Goods: Our wooden frame packaging protects furniture during transport while minimizing space usage.
6.Competitive Service Fees: HomeBridge only charges a service fee of 3-6% of the furniture value, making us very competitive in the industry. We do not collect commissions from furniture manufacturers, allowing us to offer the best prices to our clients.
7.Professional Customs Advisors: Our team is skilled at calculating customs duties related to furniture, enabling you to estimate your tax obligations in advance.
8.Legal Tax Reduction: We employ legal methods to help clients reduce customs duties. For example, when a piece of furniture is eligible for multiple HS codes, we advise clients to choose the one with the lower tax rate.
5.Conclusion
Whether choosing the right payment terms or successfully completing customs clearance procedures, understanding and mastering these steps are crucial to the successful importation of furniture. For beginners, although these processes may seem complex, once you grasp the basic knowledge and collaborate with reliable suppliers and customs brokers, the entire process will become smoother and more efficient. We hope that through this detailed article, you will feel more confident in handling payment and customs clearance matters for importing furniture from China, laying a solid foundation for your international furniture trade. If you have any questions, don’t hesitate to seek assistance from HomeBridge.
With 12 years of B2B experience and collaborations with customers in over 35 countries, HomeBridge can save you time and money at every stage. Our long-term partnerships with freight forwarders allow us to offer the best shipping prices and help you avoid high costs through accurate customs declarations.
We are committed to providing our customers with high-quality furniture and a worry-free import experience. If you want to enjoy efficient service while saving costs, HomeBridge is your ideal choice. Contact us for real-time quotes and more cost-saving suggestions; we are dedicated to ensuring your furniture procurement process is smooth and economical.
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