In this post, I want to talk about some of the possible costs associated with importing from China.

There are many variables involved, so use the following as a guide:

•    Cost of goods – $ variable.  The average cost of goods we bring in is $30,000 (20 ft container), but we’ve brought in containers with over $100,000 worth of goods too. After you have at least six quotes from suppliers, you’ll have an idea of a fair market price to pay.

•    Sourcing company – $ variable depending on level of service.

•    Freight – $ variable, depending on volume, port it’s coming from/going to, time of year, freight company used etc.  Allow $2,000 – $5,000.

•    Duty – Between 0% and 17.5% in Australia of the value Customs put on your goods

•    Goods & Services Tax – 10% of (The Customs value of cost of goods + freight + insurance + Customs duty)

•    Other e.g. Customs clearance, document fees, wharf charges etc – Allow another 3% on top of everything else.

Finance

To fund your importing, check your usual financing sources, including the banks.  Financial products go under different names including Trade Finance, Inventory Finance and Import Finance.  For small to mid size companies, the Bank of Queensland has good products and helpful service.  For established importers, a new and innovative finance company worth checking out is Octet Finance, who specialise in financing importing from China.

Failing that, friends and family are worth asking for a loan too!