Importing from China: A Step-by-Step Guide for Business Founders

China remains the world's largest exporter, and for founders based in Hong Kong and Singapore, it is often the most logical sourcing destination (close geographically, well-connected logistically, and covered by established trade frameworks). But importing from China involves more moving parts than most first-timers expect: supplier vetting, HS codes, Incoterms, pre-shipment inspections, FX management, and customs clearance all have to come together on each shipment.

This guide walks through the process step by step, based on what we see work (and fail) across thousands of real import transactions. Whether you are setting up your first shipment or tightening up an existing process, each section is designed to be actionable.

Founders who are still deciding where to base their trading entity may find the Hong Kong vs Singapore comparison useful before working through this guide.

Step 1: Understand Legal Requirements and Trade Compliance

Before you source a single product, you need to understand the legal framework governing your import. This includes your home jurisdiction (HK or SG), the destination market, and any bilateral or multilateral rules that affect your goods.

Hong Kong operates under a free port model. There are no general tariffs on imports, and customs procedures are straightforward for most goods. Certain categories, such as pharmaceuticals, controlled chemicals, and food products, require specific licences from the relevant government departments.

Singapore similarly has low tariff barriers, with GST (currently 9%) applied to most imports. TradeNet is Singapore's single-window system for all import and export declarations.

Key compliance areas for HK/SG importers:

• Product safety certifications (CE for EU markets, FCC for US, etc.)
• Import licences for controlled goods (chemicals, medical devices, food, textiles)
• Country of origin documentation is especially important for re-export scenarios
• Compliance with destination-market labelling requirements

⚠️ 2026 US tariff update — relevant if your end market is the US

If your customers are US-based, or if you are sourcing from China for US distribution, the tariff landscape shifted again over the summer. As of September 2026:

• De minimis exemption eliminated for China (May 2, 2025): Every parcel from China, regardless of value, still requires formal entry into the US. The USD 800 duty-free threshold does not apply to Chinese-origin goods.
• Section 301 tariffs (2018–2019, unchanged): Most manufactured goods (Lists 1–3) carry a 25% rate; consumer staples, apparel, and footwear (List 4A) carry 7.5%. Elevated rates apply to EVs, semiconductors, solar panels, and steel/aluminium products.
• Section 122's 10% global tariff has expired: The temporary 10% global tariff introduced after the Supreme Court struck down the IEEPA tariffs (February 20, 2026) expired on July 24, 2026.
• New Section 301 forced-labour tariff (effective July 24, 2026): USTR replaced Section 122 with a new tariff tied to forced-labour import enforcement across 60 countries. China falls into the higher tier: an additional 12.5% on non-exempt imports, stacking on top of the existing Section 301 List rates above. For a typical Chinese consumer good on Lists 1–3, that puts combined Section 301 exposure at roughly 37.5%.
• China's blended average effective tariff rate: 22.8% as of July 2026 (Penn Wharton Budget Model), the highest among major US trading partners. This blended figure includes lower-tariff product categories, so it reads lower than the ~37.5% figure for goods actually subject to the standard Section 301 lists.
• 178 product exclusions extended through November 9, 2026: Check whether your HS code qualifies via the USTR Section 301 exclusion portal. This deadline is approaching; exclusions that are not renewed revert to the standard Section 301 rate.
• IEEPA refunds still being processed: CBP had certified roughly USD 107 billion in refunds (about 64% of the USD 166 billion collected under the now-invalidated IEEPA tariffs) through August 21, 2026.
• Legal uncertainty remains: The new forced-labour tariffs are already being challenged in the Court of International Trade. A separate USTR investigation into manufacturing overcapacity (initiated in March 2026, covering China among other countries) could add further tariffs later in 2026.

For HK and SG founders, if your end market is the US, model your landed cost using the combined rate for your specific HS code (base MFN duty + applicable Section 301 List rate + the new 12.5% forced-labor layer), not a single headline number. The tariff structure has changed twice in 2026 already; treat any rate you calculate today as provisional and re-check it before committing to a large order.

Step 2: Classify Your Goods and Calculate Landed Cost

Every product traded internationally is assigned an HS (Harmonised System) code, a standardised 6-digit number that determines applicable tariff rates, import restrictions, and documentation requirements.

Finding your HS code:

• Hong Kong: Hong Kong Customs and Excise Department publishes the HK Tariff schedule with full HS code lookup
• Singapore: Singapore Customs TradeNet provides HS code classification tools and import permit requirements
• The first 6 digits are internationally standardised; the full 8–10 digit code varies by country

HS code classification table (examples):

Landed cost calculation:

Landed cost = Supplier price + Freight + Insurance + Import duties + Customs fees + Last-mile delivery

Do not forget to include:

• Destination-country VAT or GST (recoverable for registered businesses, but cash-flow impact is real)
• Port handling and terminal fees
• Customs broker fees (typically HKD 500–1,500 or SGD 100–300 per shipment)
• Pre-shipment inspection cost if applicable

Step 3: Find and Vet Your Supplier

Supplier selection is the single highest-leverage decision in an import operation. A reliable supplier absorbs problems before they reach you. An unreliable one creates problems that no amount of downstream process can fix.

Where to find Chinese suppliers:

For a full comparison of sourcing platforms and vetting frameworks, see the Statrys China sourcing guide and the guide on how to find Chinese suppliers.

Trading company vs. factory: key differences

Founders based in Hong Kong running a trading company structure may find the Statrys guide to starting a trading company in Hong Kong useful for structuring the entity correctly before placing orders.

Supplier vetting checklist:

• Business licence verification (ask for 营业执照 — yingye zhizhao)
• Factory audit or third-party audit report
• References from existing buyers (request, then actually contact them)
• Sample order before bulk commitment
• Payment terms negotiation (avoid 100% upfront; push for 30% deposit, 70% on B/L [Bill of Lading] copy)

Step 4: Agree on Incoterms and Freight Arrangements

Incoterms (International Commercial Terms) define who pays for freight, insurance, and customs, and more importantly, where risk transfers from seller to buyer. Choosing the wrong Incoterm means either overpaying or taking on risk you did not realise you had.

The four Incoterms most relevant to HK/SG importers from China:

Practical guidance:

• FOB is the most common for experienced importers, since you control freight costs and can shop for competitive rates
• CIF is common for first shipments but you lose visibility on freight costs (the supplier's freight margin is built in)
• DDP seems easy but creates complexity: you have no visibility on what was declared to customs, and you cannot reclaim import VAT in most jurisdictions
• EXW transfers maximum control to you but requires a freight forwarder who can handle China-side collection and export clearance

Freight mode selection:

Step 5: Manage Payments and Foreign Exchange

Paying Chinese suppliers involves navigating currency, bank transfer mechanics, and timing risk. Getting this wrong can cost several percent of your order value, before you have even shipped anything.

Currency options for paying Chinese suppliers:

Most Chinese suppliers prefer payment in CNY (Chinese Yuan / Renminbi) or USD. The practical options:

• CNY local transfer (via a CNY account): Fastest, cheapest, and increasingly available through modern business accounts. Clears same-day or next-day within the Chinese banking system.
• USD SWIFT transfer: Standard but slower (2–4 days) and incurs correspondent bank fees of USD 15–40 per transaction.
• HKD transfer (via Hong Kong banking system): Viable for suppliers with HK-linked accounts, but many mainland suppliers require CNY or USD.

FX risk management:

If you are importing regularly and paying in CNY, your landed cost is exposed to CNY/HKD or CNY/SGD movements. Strategies used by experienced importers:

• Spot conversion at time of payment: Simple, but you absorb all FX volatility
• Forward contracts: Lock in an exchange rate for a future payment date, which protects your margin if you have agreed a price with your supplier in advance
• Holding CNY balance: If you buy regularly, maintaining a CNY float avoids repeated conversion costs

Statrys multi-currency business accounts support CNY local transfers, FX conversion from 0.1%, and forward contracts, reducing the cost and complexity of paying Chinese suppliers at scale.

Payment milestone structure (standard for manufacturing orders):

Step 6: Prepare Export and Import Documentation

Document errors are the most common cause of customs delays. For every shipment, you need to have the following documents prepared, checked, and matched to each other.

Standard document set for an import shipment:

Common document errors to avoid:

• Mismatch between invoice value and declared customs value
• Incorrect HS code on commercial invoice
• Missing country of origin statement
• B/L consignee details not matching your company name exactly
• Incoterm on invoice not matching freight arrangements

For Singapore imports, all import declarations must be filed via Singapore Customs TradeNet before goods arrive. Your customs broker handles this, but you are responsible for the accuracy of the underlying data.

Step 7: Conduct Pre-Shipment Inspection

A pre-shipment inspection (PSI) is a quality check conducted at the supplier's factory before goods are loaded. It is the last practical opportunity to catch quality problems before you have paid the balance and the goods are in transit.

What a PSI covers:

• Product count and carton count verification
• Workmanship and finish quality check (against agreed samples)
• Function testing (for electronics and mechanical goods)
• Labelling and packaging compliance
• Shipping mark verification

When to use a PSI:

• Any order over USD 5,000–10,000 in value
• New supplier relationships (always, regardless of value)
• Products with safety or regulatory implications
• Large promotional or seasonal orders where defects would be unrecoverable

Pre-shipment inspection costs USD 200–350 per man-day for a standard inspection from reputable companies such as SGS, Bureau Veritas, Intertek, or QIMA. A standard inspection for most consumer goods takes one man-day. The cost is almost always worth it.

PSI result outcomes:

• Pass: Goods loaded, you release balance payment
• Minor findings: Agree remediation timeline with supplier, re-inspect if significant
• Fail: Negotiate hold-back, require rework, or in severe cases dispute the deposit

Step 8: Clear Customs and Arrange Last-Mile Delivery

Once goods arrive at your destination port, you (or your customs broker) need to clear them through customs and arrange delivery to your warehouse or distribution point.

Hong Kong customs clearance:

Hong Kong is a free port. Most goods clear customs without tariffs. Your freight forwarder handles the import declaration. Controlled goods require advance licence from the relevant authority (e.g., Food and Environmental Hygiene Department for food, Trade and Industry Department for strategic commodities).

Singapore customs clearance:

All imports require a permit filed via Singapore Customs TradeNet before arrival. GST (9%) is payable on CIF value. GST-registered businesses can reclaim this. Your customs broker files the permit; typical broker fees are SGD 100–300 per declaration.

Practical tips for smooth clearance:

• Appoint your customs broker before goods ship; do not leave this to arrival
• Provide documents to your broker at least 48 hours before vessel arrival
• Ensure your invoice and packing list match the B/L exactly
• For groupage (LCL) shipments, build in extra time, as de-consolidation at the port adds 2–5 days

How Statrys Can Help

Statrys is a Hong Kong-based business account and corporate services provider built specifically for SMEs and founders operating across Asia.

For import businesses, Statrys provides:

• Multi-currency business account with CNY local transfer capability, to pay your Chinese suppliers directly in CNY without SWIFT fees or correspondent bank delays
• FX services from 0.1% to convert between HKD, SGD, USD, CNY and 10+ currencies at competitive rates
• Forward contracts to lock in exchange rates for future supplier payments
• Xero and accounting integration to keep your import cost records clean
• Real-time payment tracking to know when your supplier has received payment before goods are loaded

Open a Statrys multi-currency business account and make your first CNY payment to a Chinese supplier within days.