As the toy market continues to grow, toy companies around the world are looking to minimize procurement costs. They are actively looking for product sources other than their home market. With cheap labor and high-tech manufacturing facilities, China is becoming the most popular importer of toys. However, there are multiple challenges when working directly with Chinese companies. Therefore, when importing toys from China, you need to prepare a lot of documents.
During the process of importing toys from China, how to import toy products from China and how to prepare the perfect import file become the major problems. This article will tell you some documents to fill when importing toys from China.
Before the official introduction, you need to know that global sourcing is a very important activity in today’s business activities. Essentially, global sourcing is an international trade activity. Different countries have different quality standards. Their respective customs departments control the flow of materials. Therefore, importing toys requires a lot of supporting documents. They ensure that trade activities adhere to all the parameters set by each country. So let’s begin it!
Global toy sourcing involves transactions between buyers and sellers from different countries. While importing toys from China, customs clearance is the most critical link. At the same time, the completion of customs clearance is inseparable from commercial invoices. Because the invoice is your proof of importing the toy from China and it contains all the terms and conditions involved. Most importantly, it contains all the details about imported toy goods.
The commercial invoice includes the following details.
1. Name of the client
2. Name of the exporter
3. Invoice number and date
4. Shipping details
5. Payment terms
6. Product description
7. Price per unit
8. Total quantity
9. Total value
The role of the commercial invoice is crucial in calculating import duties. With a commercial invoice, customs can monitor the nature and quantity of your purchases from China. For buyers, this is also an important document to prove that they purchased the toy. In addition to this, when your toy is lost and damaged during export, the commercial invoice can also be used as a supporting document for an insurance claim. If you plan to import from China, an import purchasing agent can help you prepare a commercial invoice.
In the process of importing toys from China, every link is strictly monitored. A packing list is a document that contains complete details about the product inside the package. It is very similar to a commercial invoice but does not contain any information about the cost of the product. A packing list comes into play when booking a shipment. The carrier usually issues the bill of lading based on the packing list. The document contains the following details.
1. Name and address of the receiver
2. Details of the exporter
3. Quantity and weight details of the goods
4. Reference numbers related to the package
5. Special instructions for hazardous materials
The packing list is an important document for importing toys from China. Make sure all your imported toys have a packing list.
Bill of Lading
When importing toys from China, logistics is a key part of it. Because the process of importing toys from China is only complete if the final goods are not damaged or lost. Furthermore, international logistics is a complex process involving multiple modes of transportation. A bill of lading is a legally binding document issued by a carrier to a freight partner. It is a confirmation receipt for the goods. The bill of lading has the following details.
1. Details of the receiver and shipment partner
2. Date of shipment
3. Total quantity and weight of goods
4. The total value of goods.
5. Freight classification
Among other things, it may contain special instructions for transporting any hazardous materials. In the process of importing toys from China, the bill of lading has 3 main functions: A document of title to the goods; Proof of final loading of products for shipment and outlays terms and conditions of carriage.
In the process of importing toys from China, when your shipment is shipped by air express, the air waybill provides details of the shipment. For tracking purposes, it uses the standard 11-digit scheme. It follows the standard format of the International Air Transport Association. When every toy product is shipped by an airline, there is an AWB. Unlike a bill of lading, it is a non-negotiable document. The air waybill consists of the following contents.
1. Name and address of the shipper
2. Name and address of the receiver
3. Code of the airport (origin)
4. Code of the airport (destination)
5. Details of the carrier
6. Shipment value
7. Quantity and weight of materials
Sometimes bills also include special handling instructions for perishable and fragile goods. Air waybill, as a contract of carriage, is not only a form of waybill, but also a customs declaration document. Typically, eight AWBs are prepared for each shipment. Each set includes originals and copies of all parties to the transaction.
Pro forma invoice
Usually, a pro forma invoice is the first step in importing toys from China. It helps buyers prepare documents and currency types for importing toys. The buyer can obtain an import license by submitting a pro forma invoice. At the same time, it also facilitates the opening of letters of credit. It is very similar to the initial offer provided by the seller. A pro forma invoice provides the seller with all necessary information about the order. Most prices are established without pro forma invoices. In addition to this, pro forma invoices also help in estimating all costs associated with the purchasing process. The pro forma invoice contains the following details.
1. Buyer information
2. Seller information
3. item detail
4. Quantity and dimensions of the item
5. Expected date and terms of delivery
6. The total value of products
7. Payment terms
8. Product price per unit
9. The expiry date of the current offering
Certificate of Origin
In the process of importing toys from China, a certificate of origin must be requested. This helps to determine import duties on toy products. Also, it helps to monitor the flow of prohibited materials from any country. The certificate of origin can only take effect after being authorized by each chamber of commerce. Today, electronic verification of certificates of origin is accepted in many countries. This file contains the details given below.
1. Exporter and importer details
2. Details of the product
3. Country of origin (Example: ‘Made in China’)
4. Product category and tariff code
The import and export declaration form is the main document for customs clearance and filing. Exporters usually submit export declarations before shipment. Customs monitors this information to control exports. Entries in the statement include:
1. Details of the product
2. Category type and number of the product
3. The total value of the products
China is becoming the world’s favorite toy sourcing destination for companies. Many European companies began to import toys from China frequently. But any product the EU trades between its member states must meet high-quality standards. With the CE certificate, toys imported from China are eligible to be sold in Europe.
The Main Documents Errors of Importing Toys from China
You need to be very careful when preparing the above documents. Any minor inaccuracies in the document could be considered fraudulent. It can cause delays in shipments and even lead to heavy fines. Especially when you are working with multiple suppliers in China, the chances of documentation errors are high. Therefore, making these files requires great care. Here are some common mistakes.
1. The cargo information does not match the actual shipment information (quantity, product category, etc.)
2. Product values in invoice and bill of exchange do not match
3. Currency input error
4. Use the letter of credit after the expiry date
5. Using electronic signatures where not allowed
6. Wrong company document entered when withdrawing a bill of exchange
7. Spelling error when entering product details
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Good luck to your importing deals. Hope all things go well~