How to Import from China: A Complete Guide for Business Founders

Most founders who import from China figure out the logistics eventually. The part that keeps catching them is the payment side: wire transfers that arrive three days late, FX fees that appear nowhere in the supplier's invoice, and the uncomfortable realisation that paying in USD when your supplier prices in RMB means someone is absorbing currency risk. It is usually you.

This guide covers the full import process: from checking whether your product can legally cross borders, through finding a supplier and understanding shipping options, to clearing customs at your end. It also covers the financial operations that most guides skip.

At Statrys, we process payments for 10,000+ business account clients, a significant share of whom trade with Chinese manufacturers. The patterns in this guide come from what we see go wrong, and what the founders who get it right do differently.

Before you spend time finding a supplier, confirm that your product can actually be imported. Two sets of rules apply: what China allows to be exported, and what your destination country allows to be imported.

China restricts or prohibits the export of certain categories: counterfeit goods, animal by-products listed under CITES (the international wildlife trade convention), certain cultural artefacts, and some dual-use goods that require an export licence. For most commercial products, there are no export restrictions. But if your product is in a grey area, verify with your freight forwarder before committing to a supplier.

From October 1, 2025, China also requires that the actual manufacturer or seller of exported goods be formally registered with the Chinese tax authorities (State Administration of Taxation). This rule, introduced under STA Announcement 17/2025, ended the previous practice of using an intermediary's export licence to ship goods. Ask every new supplier to confirm they hold their own export registration before you place an order. A supplier who cannot confirm this is a compliance risk.

Every country sets its own rules for what can be imported, at what duty rate, and with what documentation. For HK and SG founders specifically:

For imports into other markets (UK, EU, US, Australia), duty rates and documentation differ. Check your national customs authority website for your product's HS code before you agree on a price with a supplier.

Your product's HS (Harmonised System) code is a 6- to-10-digit number that determines the import duty rate in your destination country. Getting this wrong is a meaningful risk: under-declaring duty can trigger penalties; over-declaring costs you money unnecessarily.

Landed cost is what you actually pay to get the product to your door, not just the supplier's invoice price. Use this formula:

Landed cost = Product cost + International freight + Insurance + Import duty + Customs clearance fee + Last-mile delivery

Common calculation errors: founders forget insurance (usually 0.5-1% of cargo value), underestimate customs clearance fees (typically USD 100-300 per shipment depending on complexity), and miss the GST or VAT that applies on arrival if importing into Singapore or certain other markets.

Most founders start on Alibaba. That is fine, but the platform is a directory, not a vetting system. Supplier status badges (Gold Supplier, Verified Supplier) indicate the supplier paid for a listing upgrade, not that their products are reliable. You need to do your own verification.

A factory produces the goods. A trading company buys from multiple factories and resells to foreign buyers. Both are legitimate. Factories are usually cheaper on unit price but may have higher MOQs and less flexibility on product variations. Trading companies offer lower MOQs, easier communication, and the ability to consolidate orders across product lines, but add a margin layer.

For your first order, a trading company often makes more practical sense. Once you have a product and volume proven, switching to a direct factory relationship saves money.

Incoterms (International Commercial Terms) define who pays for freight and insurance, and who carries the risk of loss or damage at each point in the journey. Getting this wrong is expensive. The most common terms you will encounter when buying from China:

FOB is the recommended default for most SME importers. It puts the freight booking in your hands (where you can use your own freight forwarder and control costs) while leaving Chinese export logistics to the supplier, who is better positioned to manage it.

This is the section most import guides skip. It is also where a lot of first-time importers lose more than they realise.

Most Chinese suppliers quote in USD. When you wire USD from your HK or SG account to a Chinese bank account, three things can erode your actual cost:

• Your bank applies its own FX rate, which may be 1-3% away from the mid-market rate
• The Chinese bank at the receiving end may apply a conversion fee on arrival
• If the RMB strengthens between when you agree on price and when you pay, your effective USD cost rises

None of these costs appear explicitly in your supplier's invoice. They show up as smaller-than-expected balances, confusing reconciliation, and occasional calls from suppliers saying the payment arrived short.

Many Chinese suppliers prefer to be paid in Chinese yuan (CNY, also called RMB). A local CNY transfer settles in their bank account the same day or next business day, with no conversion loss on their end. In return, they will often:

• Accept a slightly lower unit price (they are not absorbing FX risk on your USD payment)
• Process your order faster (payment confirmed immediately rather than waiting 3-5 days for a SWIFT transfer)
• Be more flexible on payment timing

If you are placing orders worth USD 50,000 or more, the currency move between order date and payment date matters. A 2% FX shift on a USD 100,000 order is USD 2,000 absorbed as margin. Options to manage this:

Standard terms in China trade are 30% deposit, 70% before shipment (or against copy of bill of lading). For a first order with a new supplier:

• Avoid 100% upfront payment to an unverified supplier
• 30/70 is normal and protects both sides
• If the supplier asks for 50% deposit, that is acceptable for custom-made or low-MOQ orders
• Trade Assurance on Alibaba provides some payment protection but is not a substitute for supplier vetting

For most commercial imports from China, you have two main options: sea freight and air freight. The right choice depends on order value, weight, urgency, and how often you import.

FCL (Full Container Load) means you book an entire container: 20-foot (approx. 25 CBM) or 40-foot (approx. 55 CBM). LCL (Less than Container Load) means your goods are consolidated with other shippers' cargo. LCL is more expensive per cubic metre but has no minimum volume requirement.

For most first-time importers, LCL is the starting point. Once your volume exceeds around 15 CBM per shipment, FCL becomes cost-competitive and reduces the handling risk that comes with consolidation.

A pre-shipment inspection (PSI) means hiring a third-party inspector to check your goods at the factory before they are loaded. The inspector verifies product quantity, quality, labelling, and packaging against your purchase order specification.

PSI costs USD 200-350 per man-day for a standard inspection from reputable companies such as SGS, Bureau Veritas, Intertek, or QIMA. One man-day covers most small-to-medium consumer product orders.

PSI is worth the cost when:

• You are placing your first order with a new supplier
• The order value exceeds USD 5,000
• Your product has specific technical specifications, labelling requirements, or safety standards
• Your product is time-sensitive (e.g. seasonal goods) and a defect batch would mean missing your sales window

For repeat orders from a supplier you have already vetted and received acceptable goods from, PSI becomes optional. Many experienced importers use statistical sampling (checking a percentage of units rather than a full inspection) for established relationships.

Customs clearance is the process of declaring your imported goods to the customs authority of your destination country and paying any applicable duties before the goods are released.

A customs broker (or licensed customs agent) prepares and files your import declaration on your behalf. For HK importers, straightforward shipments can be cleared without a broker. For Singapore, the TradeNet permit process is manageable with experience but a broker is useful for first-time importers or complex goods categories.

Customs broker fees typically range from HKD 300-600 (HK) or SGD 80-200 (SG) per shipment for standard goods. On your first import, the fee is worth paying to avoid costly filing errors.

The payment step is where a lot of HK and SG founders lose money quietly. Slow SWIFT transfers, hidden FX markups, and no visibility on where the payment actually is are the most common issues we hear about from founders who switch to Statrys.

Statrys provides a multi-currency business account that supports outbound CNY (Chinese yuan) local transfers alongside 17 other currencies. Founders who import from China use it to:

• Pay Chinese suppliers in CNY directly, settling same-day or next business day
• Convert currency at FX rates from 0.1% based on the real-time mid-market rate
• Track payments in real time so supplier relationship calls are not about chasing a transfer
• Use FX forward contracts to lock in rates for orders with a long production lead time

The account also integrates with Xero, which simplifies reconciliation for founders who import regularly and deal with multiple currencies per month.