1/15/2024 0 Comments Drug export licenseNeed to ensure compliance with a whole range of product safety standards? Don’t ask this type of factory for help. If you cut them out, then you must manage quality ‘on site’ in the factory. The role of the Export manufacturer is generally to keep track of their subcontractors, and implement some sort of quality assurance procedures. They only communicate in Chinese, as they don’t have a need to hire English speaking sales representatives.ģ. You need to navigate the bureaucracy of exporting the goods out of ChinaĢ. While such factories can be slightly cheaper, they come with a whole range of issues for the buyer:ġ. While ‘having a license’ may not add a single point to a suppliers score, ‘not having the license’ does take many points away – as it comes with negative implications for your business.Īs I mentioned, manufacturers that lack Export licenses are normally not exposed directly to overseas markets. As such, you should on the other hand not assume that a manufacturer is qualified, only because they hold an Export license. In most cases, the answer is Yes, you should only work with suppliers that hold an Export license.Įxport licenses are sort of taken for granted these days. Should we only work with suppliers that hold an Export license? In many cases, they act as specialized subcontractors, only focused on making a certain kind of material, component or processing for a larger – and more export oriented – manufacturer. These tend to be smaller manufacturers, without direct exposure to other markets. That said, there are manufacturers, that to this day, lack export licenses. In addition, the production cost is higher, resulting in less profit margin for manufacturers to share with trading companies. Things have changed, and China is far more business friendly in 2017, as compared to 1997. First, obtaining an export license used to involve a lot of bureaucracy, and it came at a cost too. In the past, say 10 to 15 years ago, it was relatively common that manufacturers did not obtain export licenses, and therefore relied on trading companies and export agents to export the cargo. Why do some suppliers not have Export licenses? That is still not a way to reduce costs, as you must still pay it to another party in the end. If you import goods via EXW (Ex Works) terms, the supplier is not including the export fees in the quoted price. However, the all such costs are included in the FOB (Free on Board), CIF (Cost Freight Insurance) and DAP (Delivered at Place) price quotations.Īs such, many Importers are not aware that they are paying these export fees (and perhaps more importantly, not bothered by it). However, there is a set of ‘Export clearance fees’ that are ultimately paid by the Importer, on a per shipment basis. Overseas buyers are not required to pay any import duties or taxes in China. Hence, overseas buyers don’t need to obtain license or permit in China.ĭo buyers need to pay any export fees or taxes in China? The Export licenses are only issued to Chinese companies, that wish to export goods from China to overseas markets. SCHEDULE A VIDEO CALL WITH US Shall the Supplier or the Buyer apply for the Export license? We can help you manufacture products in China, Vietnam & India?
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