Find answers to your frequently asked questions about trade and logistics in China, including payment methods, transit times, negotiation, and more with W Group Worldwide.

1. Do they speak English in China?

In commercial areas like Hong Kong and Shanghai, English is common, but in industrial zones like Shenzhen or Guangzhou, it is limited. This linguistic challenge can cause business misunderstandings, as Chinese merchants often operate under legal conditions in Chinese. Clarity in communication is vital to avoid errors from the start.

2. What is the payment method?

The payment method depends on the Incoterm. For FOB, it is usually a 30% initial payment with the balance due upon delivery. For DDP, it is a 50% initial payment with the balance due upon delivery. Understanding these terms is crucial for ensuring successful financial transactions in trade with China.

3. What is the transit time for sea transport?

4. What if I don't know the technical details or specifications of my product?

A lack of knowledge about a product's technical details or specifications is a common challenge when importing from China. To overcome this, we recommend the following:

· Conduct prior research to gather all possible information about the product, including measurements, alloys, international names, and certificates.

· Consult our online catalog to identify similar models that can serve as a reference.

· Provide as much detailed information as possible, including web links, high-quality photographs, or even physical samples, to facilitate the precise identification of the desired product.

· Remember that in China, manufacturing is based on detailed specifications; there is no "normal" standard. Therefore, precision in details is key to avoiding misunderstandings and ensuring that production meets your expectations.

5. What currency is used in China?

In China, commercial transactions can be conducted in various currencies, but the Renminbi (RMB) is the most commonly used currency for local quotations and transactions. However, for international transactions, the U.S. dollar (USD) is widely accepted and used. We recommend handling quotations in RMB to protect against exchange rate fluctuations. While transfers are often made in dollars, working in RMB can offer greater price stability, except in cases of significant variations in material costs or other less common situations. It is crucial to pay attention to currency conversion and market conditions to make informed decisions.

6. Can W Group Worldwide help me get a Chinese visa?

Yes, W Group Worldwide offers assistance in obtaining Chinese visas by issuing invitation letters from our partner companies in China. This service is designed to facilitate the visa application process for our clients in their home country. We recommend starting the process well in advance and complying with all specific requirements set by the Chinese embassy or consulate in your country. For more details on how we can assist you, please contact us directly.

7. Can I insure the goods I ship from China?

Yes, it is possible and highly recommended to insure your goods shipped from China to protect your investment. Cargo insurance can be purchased before shipping and covers a wide range of risks during transport. W Group Worldwide can advise you on the insurance process and recommend international insurance companies. You also have the option to insure the goods through us before shipping or directly in your destination country, based on the bill of lading. It is important that all amounts and documents match to facilitate the claims process if necessary.

8. Why is it important to know the quantities when contacting suppliers in China?

Knowing the quantity range is crucial when contacting suppliers in China because it determines the price, the type of manufacturer suitable for your order, and the possibility of accessing goods in stock or special conditions. While an exact quantity is not required from the beginning, having a clear range allows suppliers to offer more accurate quotes tailored to your needs. This approach not only expands the available product options but can also influence the negotiation of more favorable prices and conditions. W Group Worldwide advises you in this process to ensure you find the best possible deal, adapted to your specific requirements.

9. If I used to buy in Los Angeles, Panama, Iquique, or Peru by the dozen, will buying 300 units in China be much cheaper?

Buying directly in China in quantities like 300 units may not automatically result in lower prices than those obtained by buying by the dozen in other countries. This is because your supplier in these countries is likely a large-scale importer, benefiting from volume pricing and maintaining a regular clientele, which allows them to offer competitive prices. In China, the price also depends on the manufacturer and the specific quantities. To gain a competitive edge, we recommend focusing on novelty and original design. W Group Worldwide supports you in identifying strategies that fit your needs and in finding advantageous prices that benefit your business, beyond a simple comparison of unit prices.

10. Can I find reliable suppliers at trade fairs?

Attending fairs in China and Hong Kong can be an excellent opportunity to identify serious suppliers and quality products. However, we recommend using these fairs more as an exploration tool than as a definitive means to establish commercial agreements. It is important to remember that not all exhibitors directly represent manufacturers; many are intermediaries. Additionally, presence at a fair does not guarantee the quality or seriousness of the supplier. W Group Worldwide advises you to use fairs to get an overview of the market, identify trends, and make initial contacts, but always conduct a thorough verification and possibly visit the production facilities before committing to any agreement.

11. I have money for a business with China; what do you recommend I buy?

Determining what to buy with your investment requires a detailed analysis of your target market and current trends. China offers a vast range of commercial opportunities in various product categories. The key to a successful investment lies in understanding the needs and preferences of your potential customers, as well as identifying market niches with growing or unmet demand. W Group Worldwide, with its extensive experience and access to a wide range of products, can assist you in selecting goods that not only fit your budget but also offer a high potential return. We recommend considering innovative, high-quality products that respond to emerging trends or specific needs in your market. Customization and differentiation can also be key factors to stand out in a competitive market.

12. Is it a good business to buy replica handbags, watches, and shoes?

W Group Worldwide strongly advises against buying replicas of handbags, watches, shoes, or any other branded products. Although the initial investment in these products may seem attractive due to their low cost and apparent high demand, the trade of replicas involves significant risks. These risks include legal issues for copyright and trademark infringement, potential customs sanctions, and damage to your business's reputation. The quality of replicas is also often inferior, which can result in a high rate of customer dissatisfaction and returns. Instead of focusing on replica goods, we suggest you explore options for original, unique, and quality products that can offer real value to your customers and establish a solid foundation for your long-term business. W Group Worldwide is committed to ethical and sustainable business practices.

13. Is it a good business to buy technology from recognized brands? Since they are made in China, should they be cheap?

Buying technology from recognized brands directly in China does not guarantee lower prices than in other markets. Although many tech brands produce their items in China, original and branded products often have similar prices worldwide due to companies' international pricing policies. Original, branded tech products can even be more expensive in China due to taxes and import fees. It is important to distinguish between original products and replicas; attractive offers on the internet or in physical stores often correspond to low-quality replicas or refurbished products. W Group Worldwide recommends caution and suggests making purchases through official channels or authorized distributors to ensure the authenticity and quality of technology products, thereby avoiding legal and customer satisfaction issues.

14. Can I place orders, make changes, or give instructions for my orders via WhatsApp, Facebook, Instagram, or a similar platform?

W Group Worldwide facilitates communication with clients through multiple digital platforms like WhatsApp, Facebook, and Instagram for initial inquiries or quick assistance. However, for any official changes to orders or detailed order specifications, we require these modifications to be made via email. This ensures that there is a formal record of all changes and requests, providing clarity and avoiding misunderstandings in managing your order. This policy helps us maintain a high level of accuracy and efficiency in processing and fulfilling your orders, guaranteeing effective communication and customer satisfaction.

15. Can I work with samples, subject to prior approval for my orders?

Yes, working with samples before proceeding with full orders is a common and recommended practice at W Group Worldwide. Requesting a set of samples allows you to verify the quality, specifications, and conformity of the product with your expectations before committing to a mass production order. This process gives you the opportunity to request adjustments or modifications if necessary, ensuring that the final product meets your requirements. W Group Worldwide will assist you in coordinating the acquisition of these samples, facilitating communication with suppliers and managing the shipment of samples for both your review and ours. This stage is crucial to guarantee total satisfaction with the products before large-scale manufacturing.

16. Can you prepare a total invoice for the cargo?

W Group Worldwide can prepare and provide a total invoice for the cargo that reflects all the details of your order, including the product description, quantities, unit prices, and total value. This invoice is essential for the import and customs process, providing a detailed document that supports the value and description of the goods shipped. The preparation of this documentation is carried out according to the specific provisions and requirements at the destination, ensuring that it complies with customs regulations and facilitates a smooth import process. Our team coordinates closely with clients and their customs agents to ensure all documentation is accurate and complete, minimizing potential delays or problems at customs.

17. Does my relationship with you end after the purchase?

At W Group Worldwide, our relationship with clients goes beyond a simple purchase transaction. We offer comprehensive post-purchase support, acting as mediators in the ongoing relationship between the manufacturer and the client. This support includes coordinating warranties, providing technical assistance, manuals, and in some cases, on-site support for more complex training or installations. Our goal is to ensure not only satisfaction with the purchased product but also to facilitate a smooth and effective long-term collaboration. We are committed to maintaining high standards of service and assistance at all stages of the purchase and import process.

18. What documentation is necessary when importing goods from China?

To import goods from China, it is essential to have the correct documentation to comply with customs requirements in both China and the destination country. The basic documents include:

· Bill of Lading (BL) or Air Way Bill (AWB): A shipping document that proves the transport and receipt of the goods.

· Commercial Invoice: Provides purchase details, including the description of the goods, quantities, and total value.

· Packing List: Details the goods shipped, including types, quantities, and dimensions of the packages.

Additionally, extra documents may be required depending on the nature of the goods and specific requirements of the destination country, such as:

· Proforma Invoice: Issued before production, detailing agreed-upon conditions such as delivery dates, prices, and payment terms.

· Certificate of Origin: Essential for some imports, it indicates the origin of the goods.

· Import License: Necessary for certain products that require prior authorization.

· Cargo Insurance: Provides financial protection against loss or damage during transport.

· Additional customs documents: May include sanitary, veterinary, or phytosanitary certificates, depending on the category of imported products.

W Group Worldwide will assist you in the preparation and management of all necessary documentation, ensuring a smooth import process that complies with regulations.

19. Who issues and signs the B/L?

The Bill of Lading (B/L) is issued by the shipping company or its agent. This document is fundamental in the transport of goods by sea, as it acts as a receipt for the cargo, a transport contract between the exporter and the shipping company, and a way to transfer ownership of the goods. Usually, three original copies of the B/L are issued, which are signed by the carrier or their authorized agent. The exporter or their customs agent typically requests the B/L, which is then used to claim the delivery of the goods at the destination port. It is essential for the importer to be in possession of the original B/L to clear customs and receive the cargo.

20. How to avoid scams in China?

To minimize the risk of scams when doing business in China, it is crucial to adopt a proactive and detailed approach to verifying and supervising your commercial operations. W Group Worldwide recommends following these six essential steps:

1. Supplier Audit: Before establishing any commercial relationship, conduct a thorough audit of the supplier to verify their legitimacy, production capacity, and commercial credentials. This process includes evaluating their facilities, production processes, and commercial background.

2. In-Production Inspection: Implement inspections at various stages of production to ensure that the products comply with your specifications and quality standards. This allows for the timely identification and correction of deviations or problems.

3. Quality Control: Before shipment, perform rigorous quality controls to verify that the final products are as agreed. This stage is crucial to prevent the receipt of defective or non-conforming goods.

4. Cargo Inspection: Ensure a cargo inspection before shipment to confirm that quantities, packaging, and labeling are correct and ready for export. This avoids discrepancies and problems upon receipt.

5. Review of Legal Documents: It is essential to verify the supplier's legal documentation and commercial registrations. A detailed review of the factory and its operations provides an additional layer of security and confidence in the supplier's legitimacy.

6. Adequate Representation: Having the representation of a specialized company with experience in the Chinese market, like W Group Worldwide, can be decisive. The right representation ensures that you understand local business practices and legal requirements, and helps you navigate the complex Chinese business environment, increasing your chances of success.

At W Group Worldwide, we understand the importance of these steps to ensure successful and secure commercial transactions in China.

21. What errors can occur in documents if I handle the shipment with my supplier?

When you handle shipments with your supplier, various errors can arise in the documentation and other problems related to merchandise control, which include:

· Transcription Errors: Linguistic differences and human errors can lead to discrepancies in names, addresses, or product codes in the documents.

· Incomplete Information: The omission of data required by customs can cause delays, fines, or even the seizure of the goods.

· Discrepancies in Quantities or Descriptions: Differences between what is declared in the documents and what is physically shipped can lead to delays and penalties during the customs process.

· Missing Documents: The lack of essential documents like the Bill of Lading, Commercial Invoice, or Packing List can prevent the release of the goods at the destination port.

· Supplier Control over the Goods: When the supplier handles the transport, they retain total control over the goods, which can be problematic if discrepancies arise after quality control or cargo inspection has been performed and payment has been made. The responsibility and decision-making about the transported cargo fall directly on the supplier, including critical aspects like cargo insurance.

22. What is the VAT charge reflected in the transport payment from China?

The Value-Added Tax (VAT) charge on transport from China was introduced as part of the country's tax reform. Since August 1, 2013, all freight charges paid in China are subject to this tax. The VAT applicable to transport services is 6.83%, and it affects both international shipping costs and charges related to domestic transport in China. This tax is reflected in the total cost of transport and must be considered when calculating import costs to ensure accurate financial planning. W Group Worldwide advises its clients on these tax obligations and helps optimize logistics and transport costs, including the management and planning of VAT, to ensure that import operations are both efficient and cost-effective.

23. What problems can arise when working with a client's own freight forwarder in the destination country?

When clients choose to work with their own freight forwarder in the destination country, they face a series of logistical and communication challenges that can affect the efficiency and cost of the import process. These agents often promise to have control and mastery over logistics at the origin, such as in China, when in reality they depend on alliances with local forwarders. This can lead to several problems:

· Chain of Intermediaries: The presence of multiple intermediaries between the client and the logistics at the origin increases complexity and costs. Each link in this chain seeks to make a profit, which is reflected in an increase in the final service costs.

· Lack of Transparency: Forwarders in the destination country and their counterparts in China often omit information or exaggerate their reach and capabilities. Given the size and logistical complexity of China, it is unlikely that a single forwarder has a presence and competitive prices throughout the territory.

· Delays due to Ineffective Coordination: The involvement of multiple parties in cargo management often results in delays due to a lack of timely information, difficulties in making quick decisions, incorrect or incomplete documents, and misunderstandings. The time difference exacerbates these problems, as the client's freight forwarder may not be available at critical moments for decision-making in China.

At W Group Worldwide, although we do not force our clients to use our logistics services, we warn about these problems based on our extensive experience. We are prepared to coordinate with your freight forwarder if you prefer, but it is important to be aware of the challenges and risks that this decision can entail.