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CUSTOMS INVENTORY CPC 10 000 96/PR - 1st Contact Shipping form

hey guys it's me Sarah the video editor here at wholesale kids and in this video I'm going to give you the five big mistakes that people first make when they start importing goods from China now some of these mistakes that I have personally made and some of these mistakes that most friends have made in fact a friend of mine recently made mistake number three and it cost him a lot of money and unexpected fees which necessarily ate into his profit margin it was actually this incident that inspired me to make this video now just a quick disclaimer most of my subscribers here at wholesale tir'd are looking to import products from China into the USA so there is going to be a lot of us a specific advice in this video but I will do my best to give everything a worldwide context as well and another disclaimer this video at times may get a bit technical but I'll do my best to explain everything as simply as possible so to find out what these mistakes are and how to avoid making them for yourself keep watching this video mistake number one assuming that shipping by sea will be the cheapest option now this is a classic mistake that I see a lot of new sellers make those you nerves they ship by sea and they will get a leg up on your competition and they'll often tell this to me as though the crack some super secret code oh I'm going to be different I'm going to be bitter I'm going to ship by sea I found the secret I'm going to be really rich yeah it doesn't work that way the truth is unless you're shipping in large quantities outside of China it is usually cheaper to ship via no shipping by sea is on the surface cheaper than shipping by ear you see if you should proceed it will normally cost you around 60 cents per kilogram whereas shipping by air Korea will normally cost you around seven dollars a kilogram so that is a huge difference and I can imagine that you're sitting there behind your computer thinking Sarah what are you talking about you just did the shipping by sea is cheaper so how can it either be cheaper to ship by ear or the thing is is that for you to be able to get at that loan price you need to be shipping by container and the containers are very large this means that you're going to be shipping hundreds of kilograms and if you can't fill a container by at least 60 to 70 percent then again it will usually be cheaper to ship by ear rather than by sea now a lot of my subscribers here at wholesale kids that are interested in importing guys from China will be private label manufacturers for Amazon SDA and for most of you guys out there you are not going to be shipping in large enough quantities to make it worth while shipping by container now let's talk about shipping by ear when it comes to shipping by ear you have two options one air freight and two air carrier a lot of people hear this and they get confused I mean aren't they the same thing well they are not Carreras Daschle shipment so some courier companies that you probably recognize a FedEx UPS and DHL these companies have their own fleet of cargo planes which ship items all around the world cargo carriers will pick up your items from your supplier and then drop them off at your location of choice so again for a lot of my subscribers here at also Ted this is going to be an Amazon warehouse on the other hand your freight is when you simply have your cargo flown from one Airport to the other you see airlines like air china storages carry cargo for their passengers they also carry commercial cargo as well and sometimes this can be almost half the price of having your items taken by cargo but like with all things in life there is a catch you still need to pay someone to pick up your cargo from your Chinese supplier and then drop it off at the airport and you will need to source an independent customs broker to handle the documentation at the border and you will also need to organize freight forwarding so that your cargo can be picked up from the port and dropped off at your location of choice and again for my subscribers here at home so kid it's probably going to be an Amazon warehouse there are oftentimes unfortunately hidden fees and this that you don't account for on your very first time which is why if you're importing for the first time and you're doing this you need to allow a buffer now this all sounds probably a bit expensive and yes it can be but it gets a lot better in larger quantities the reason is that when it comes to a freight and 14 companies there are a lot more seks fees and obviously these fees scale as you ship larger quantities ultimately if you're shipping something there is 50 kgs or less it is almost certainly cheaper to ship by carrier rather than Freight and believe it or not depending on the items that you are shipping it may they'll be cheaper or comparable to use courier rather than Freight the most important thing to do to avoid this mistake is to do your research ahead of time there is a lip cycle freeze off that lets you compare freight rates from different companies I'll have a link to it in the video description below please be aware that as an affiliate link here are also tips all of our YouTube videos are free and affiliate links help us keep our videos free mistake number two not using the metric system when working with Chinese suppliers now this is just a quick note but my subscribers here at wholesale 'td then it's not evolved to use the metric system like we have here in New Zealand in China they use the metric system as well and not the imperial system so when you're working with your supplier be sure to use cages instead of pounds and be sure to use centimeters instead of inches and this is just a general note to anyone that wants to work with Chinese suppliers when you're working with a Chinese supplier you need to be aware that they expect you to work on their terms and not on your terms this means working on their timeframes and their schedules as a foreigner it is not culturally acceptable for you to be late to a meeting but it is culturally acceptable for them to be late to a meeting now is the sphere no but you're getting your items ridiculously cheap so truthfully I wouldn't really complain too much make things easy work with them rather than against them mistake number three using lists and container load as your shipping option now unfortunately this can be a very costly mistake to make and as I said it's start of this video I have a friend of mine that made this mistake and again it costs them a lot of money so remember how earlier I was telling you that if you ship by sea then you need to ship using an entire container well a quick boring facts this is called if Co which stands for full container load the truth is is that this isn't the only option you can also ship by renting basically a portion of a container and this is called LCL which stands for list and container load you and other important read a portion of a container so that collectively it makes it worthwhile to ship by sea so my friend discovered this Eddy for yes this is great this is my solution I can still ship IC was a small shipment and have rock-bottom prices and of mind he had a fantastic plan he was going to ship half of his cargo by ear so there will rise in the Amazon warehouses quickly so that he could start selling very fast and then had shipped the rest of his cargo by sea using LCL so that he had saved lots of money and make even more profits a perfect plan right until I got a focal from him so Sarah I purchased my inventory and I said half of it by ear half of it by sea and I was like oh and he's like so the hearts that I see it by ear well that's been fine and Rather's like well no surprises there but the half rescued by sea has accrued these huge charges at the port that I didn't expect a hundreds of dollars and they are completely destroying my profit margins unfortunately he wanted me to help me come up with a solution but I didn't really have one the thing about these companies that offer lco shipping is that they usually don't make their money in the shipping process instead they make their money at the port this is because you have to pay huge fees at the port as a result of shipping with them the reason for this is again these companies don't make their money during the shipping process instead they make it at the port and forms of commissions and kickbacks for the additional fees that you the importer have to pay there it's a super dirty thing to do and it preys upon new importance you see every port has its own destination service charges in the United States these usually are about five hundred to a thousand dollars per container so you would assume that because you're only renting a portion of the container that you would be paying fees relative to the portion that you are using right well there's not the case when you shirt by LCL you usually get slammed with a huge fee that instead of being based upon the container size is based upon your share of the container in cubic meters essentially you end up paying hundreds of dollars at the port and charges and these can often be comparable to if you had shipped an entire container yourself and in the company makes its money through commissions and kickbacks which are called rebate and so lay my free discovered if you had instead by ear well you would have saved a lot more money and your inventory would have gone there a lot faster than if you had shipped by LCL it's a slimy business do not fall for it do not fall for something that is too good to be true mistake number four not checking what duties you have to pay first of all I want you to not worry there is a simple solution to a seemingly complicated problem and it's worthwhile doing so that you don't get slapped with an unexpected bill this isn't a spec that another friend of mine made they did not correctly calculate what their duties would be so when they got the bill it was a bit of a sticker shop in their case they had not set aside the correct amount of money so they had to scramble to get it together so that the inventory could be cleared at the border now shooters can be a bit complicated for example let's say that you are importing will inject it into the USA well there isn't just one tax applied to oval and jackets there are other factors to consider when working out what your duty rate will be for example was the wool used for the jackets imported from Israel well if so Israel has a duty-free agreement with the USA in relation to wall so if the wall used for your jackets came from Israel then your duty rate will be cheaper and here is another question do you will inject it contains synthetic fibers or are they pure wool if they contain synthetic fibers then your duty rate will be higher because of the fact that in the USA there are higher duties applied to products made with synthetic fibers due to the editors views during the creation also get excited but you know as the importer it's unlikely that you are going to show the answers to all these questions but luckily you don't need to because the chances are your supplier does erosions imported to the USA has what is called an HTS code slapped on them and this HTS code has a duty rate applied to it these codes account for all of the weird quirks like what types of fabrics were used HT s stands for harmonized tech system this is a huge manual containing over 17,000 codes people spend their whole lives studying this they get PhDs and love luckily you don't need to you just need to know what the HTS code is for the item that you're importing and most Chinese supplies we'll be able to give it to you when they do just do a search for it and figure out what your duty rate is now interesting fact the system for classifying items is actually universal so the chances are that even if you're not importing patients into the USA that your local country of residence has something similar as well see I told you that there is a simple solution to a seemingly complicated problem which leads me on to my final mistake mistake number five being afraid to import because you're scared of making mistakes I understand that it's easy to listen to this video and be afraid and put off from importing because the fact that you're afraid of making mistakes like the people of mentioned as well and also losing money because after all if you screw up that is going to cost you money and nobody wants to lose any money and I'm going to be honest with you even if you follow a step-by-step system there is a reasonable chance that you may still lose money from some unexpected feeds that you didn't realize you were going to have to pay and while honestly this is just life and unfortunately like my friends from mistake number three this could massively eat into your profit margin well here is the thing my friend he made that mistake but now he knows he has learned from his mistake next time he will use air freight for all of his cargo saving a lot of money and greatly increasing his profit margin sure he lost some money the first time but since he's done at once he knows what to expect now and how to avoid those same mistakes that he first made and of course next time he'll go on to make a lot of money if he hadn't gone out there and trade he'd still be stuck in the same place doing the same old job making no progress the only way to guarantee failure is honestly to not try at all but instead for him he went out there gave it a shot no it wasn't perfect but the next time he sends up up two massively succeed mistakes are part of entrepreneurship sure learn from other people's mistakes and don't make the same ones but don't be afraid to make your own thanks for watching this video if you liked it I'd appreciate it if you gave us a thumbs up and subscribe to us here hosted for more great videos about making money selling online and if you have any questions be sure to ask them in the comment section below admittedly here at wholesale kid we do get over of questions but we try to answer as many as we can and if you would like to start your own online business but you don't know how and you should be sure to download our free ebook how to make ten thousand dollars a month online with drop shipping you'll find a link on how to download this incredible life-changing ebook and the video description below