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

China remains the world's largest exporter, 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, 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 — pharmaceuticals, controlled chemicals, 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:

• 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 — 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 following apply to your goods as of 2026:

• De minimis exemption eliminated for China (May 2, 2025): Every parcel from China — regardless of value — now requires formal entry into the US. The $800 duty-free threshold no longer applies to Chinese-origin goods.
• Section 301 tariffs: 25% on most goods (Lists 1–3), up to 100% on EVs, 50% on semiconductors, 50% on solar panels, 50% on steel and aluminum products.
• Section 122 global tariff (effective Feb 24, 2026): A 10% global tariff replaced the IEEPA tariff layer after the US Supreme Court struck down IEEPA authority on Feb 20, 2026. This applies to Chinese goods alongside the Section 301 rates.
• Effective landed rate on most Chinese consumer goods into US: approximately 35% (10% Section 122 + 25% Section 301 + MFN base rate). Rates on specific categories (EVs, semiconductors, solar) are significantly higher.
• 178 product exclusions extended through November 10, 2026: Check whether your HS code qualifies for exclusion via the USTR Section 301 exclusion portal.
• New Section 301 4-year review initiated May 6, 2026 by USTR — rates on some categories may be revised over the coming 12–18 months.

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: The HS code in Hong Kong is called the Hong Kong Harmonised System (HKHS). The Census and Statistics Department (C&SD) publishes the HS code look-up tool.
• Singapore: Singapore Customs provides HS code classification tools, including the HS/CA Product Code Checker and import permit requirements. 

The first 6 digits are internationally standardised; the full 8–10 digit code varies by country

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 
• 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 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

Practical guidance:

• FOB is the most common for experienced importers — 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)
• 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 RMB (CNY/CNH/Chinese Yuan) or USD. The practical options:

• RMB local transfer (via a RMB account): Fastest, cheapest, and increasingly available through modern business accounts. Clears same-day or next-day within the Chinese banking system.
• SWIFT transfer: Standard but slower (2–4 days) and incurs correspondent bank fees of USD 15–40 per transaction.

FX risk management:

Any time your costs and revenues sit in different currencies, you're carrying FX exposure. Here are 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 — 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
• Foreign currency account — A dedicated account in a specific currency. You receive in that currency, hold it, and pay out in it — conversion only happens when you choose. 
• Multicurrency account — Lets you hold, receive, and pay in multiple currencies from a single account. Rather than converting reactively when a bill arrives, you can convert when the rate is favourable and hold the balance ready to pay.

Statrys multi-currency business accounts support RMB local transfers, FX conversion from 0.1% fee, 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 the commercial invoice
• Missing country of origin statement
• B/L consignee details not matching your company name exactly
• Incoterm on invoice not matching freight arrangements

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 typically 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 200–500 per man-day for a standard inspection. Known companies include 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 the balance payment
• Minor findings: Agree on the remediation timeline with the 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. The importer or the freight forwarder handles the import declaration. Controlled goods require an 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:

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 — de-consolidation at the port adds 2–5 days

How Statrys Can Help

Statrys is a licensed Money Service Operator providing Hong Kong multi-currency business accounts designed specifically for SMEs and founders doing business across borders. 

For import businesses, Statrys provides:

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

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