How to Source Parts from China — the ultimate practical guide
Source Products from China Use air for small, high-value parts; sea (FCL/LCL) for bulk/weight-sensitive parts; rail for mid-volume Europe lanes.
Always run a landed-cost per SKU (unit cost + freight + duty + VAT + local fees). I provide three worked examples below you can copy.
If you’re new: prefer DDP for first small orders, move to FOB+local freight once you can manage customs.
How to choose transport — decision matrix
Three sample landed-costs (step-by-step math you can reuse)
RFQ → PO → Shipping → Customs — exact checklist & templates
Incoterms: practical rules for buyers (FOB / CIF / DDP explained)
Compliance & customs: HS codes, documents, and common traps
Supplier verification & QC playbook (AQL, inspections, samples)
Cost optimization & risk mitigation playbook
Tools, downloads & copy-paste templates
FAQ — concise operational answers
Use these rules to pick sea / air / rail / express.
| Situation | Best mode | Why (short) | Quick metric to check |
|---|---|---|---|
| Small, high-value parts, <200 kg, urgent | Air (express) | Fast, low lead time, higher $/kg but lower time-to-market risk | Compare $/kg vs lost margin if late |
| Low value, heavy or bulky, non-urgent | Sea (LCL/FCL) | Cheapest $/kg for volume | $/unit delivered with 20′ GP baseline |
| Medium volume, EU destinations, 7–18 day urgency | Rail (China→Europe) | Price between air & sea; predictable transit | Transit days vs buffer stock days |
| Samples or replacements, door-to-door small parcel | Express courier | Fastest, customs clearance baked in | Price per kg + pickup speed |
What to calculate when choosing:
Freight per unit = (freight cost) ÷ (units)
Time risk cost = (cost of delay per day) × (expected delay days)
If freight per unit + inventory carrying < time-risk cost → choose faster mode.
These are illustrative but accurate arithmetic examples you can copy. Replace the input numbers with quotes you get.
Order: 200 pcs
Unit price (EXW factory): $12.00
Unit gross weight: 0.30 kg → Total weight = 200 × 0.30 = 60.0 kg
Freight (DHL express): $9.00 per kg → Freight = 60.0 × 9.00 = $540.00
Insurance: 0.5% of goods value → compute goods value first.
Goods value = 200 × 12.00 = $2,400.00
Insurance = 0.005 × 2,400.00 = $12.00
Customs duty: 2.0% of goods value = 0.02 × 2,400.00 = $48.00
VAT / Sales tax (example 20% on dutiable base): VAT base = goods + duty + freight + insurance = 2,400.00 + 48.00 + 540.00 + 12.00 = $3,000.00
VAT = 0.20 × 3,000.00 = $600.00
Total landed cost = goods + freight + insurance + duty + VAT = 2,400.00 + 540.00 + 12.00 + 48.00 + 600.00 = $3,600.00
Unit landed cost = 3,600.00 ÷ 200 = $18.00 per unit
Key takeaway: unit price rose from $12 → $18 after freight, duty, VAT. Long story: air can be justified only if time value > $6/unit.
Order: 10 units
Unit price: $50.00 → Goods value = 10 × 50.00 = $500.00
Total gross weight: 150 kg (packed)
Freight (LCL consolidation + port charges): estimate $200.00 per CBM/consignment — assume 1 CBM → Freight = $200.00
Insurance: 1.0% of goods value = 0.01 × 500.00 = $5.00
Customs duty: 5.0% of goods value = 0.05 × 500.00 = $25.00
VAT (20% example): VAT base = goods + duty + freight + insurance = 500.00 + 25.00 + 200.00 + 5.00 = $730.00
VAT = 0.20 × 730.00 = $146.00
Total landed cost = 500.00 + 200.00 + 5.00 + 25.00 + 146.00 = $876.00
Unit landed cost = 876.00 ÷ 10 = $87.60 per unit
Key takeaway: for low-qty, ocean LCL can still produce high landed cost per unit. Consolidation or bigger MOQ needed to lower unit landed cost.
Order: 1,000 units
Unit price: $2.00 → Goods value = 1,000 × 2.00 = $2,000.00
Container freight (20′GP door to port export): $1,800.00 (example)
Insurance: 0.5% of goods value = 0.005 × 2,000.00 = $10.00
Customs duty: 3.0% of goods value = 0.03 × 2,000.00 = $60.00
VAT (20% example): VAT base = goods + duty + freight + insurance = 2,000.00 + 60.00 + 1,800.00 + 10.00 = $3,870.00
VAT = 0.20 × 3,870.00 = $774.00
Total landed cost = 2,000.00 + 1,800.00 + 10.00 + 60.00 + 774.00 = $4,644.00
Unit landed cost = 4,644.00 ÷ 1,000 = $4.644 per unit
Key takeaway: scale dramatically lowers unit landed cost. FCL is almost always cheaper per unit once you fill a container.
Replace my input numbers with your supplier quote, freight quote, duty rate and VAT rate.
Keep the formula order identical: compute goods value → freight → insurance → duty → VAT base → VAT → total.
If you have inland pickup/delivery, add inland pickup cost into freight or as separate line.
Product name / SKU / part number
Unit price (currency) and currency of invoice
MOQ and lead time (production days)
Unit weight (g) and packed weight (kg)
Dimensions (L×W×H) per unit and per carton
Cartons per pallet, units per carton
Packing type (inner, carton, pallet)
Incoterm requested (FOB/CIF/DDP) and port/airport of loading & delivery
Sample availability & cost, tooling cost (if any)
Compliance certificates required (CE/UL/RoHS etc.)
Sample RFQ subject line (copy-paste):
RFQ: [SKU] — Qty [X] — Request FOB Shanghai quote and lead time
Exact SKU & description, unit price, currency, quantity
Delivery term (Incoterm + named place)
Production lead time + penalties for delay (e.g., 0.5%/week up to 5%)
Packaging spec & marking requirements
Payment terms (e.g., 30% deposit, 70% at B/L copy) or LC details
Inspection terms (pre-shipment inspection required, third-party allowed)
Warranty and replacement clause
Booking party (who books the vessel/flight)
Notify party and consignee details (full company & tax ID)
Container stuffing instructions, palletizing, labeling
Required documents: Commercial Invoice, Packing List, Bill of Lading (or AWB), COA, Certificates
Confirm HS code and estimated duty rate before shipping.
Have importer/exporter registration numbers (EORI, VAT ID, EIN etc.).
Prepare commercial invoice in exact amounts/currency as on packing list.
Use correct Incoterm to know who clears and pays.
Keep a contingency fund for inspections and demurrage (2–5% of goods value is prudent).
Short, pragmatic guidance to choose Incoterms.
EXW (Ex Works): Low price, high responsibility for buyer. Avoid unless you have a trusted China logistics partner.
FOB (Free On Board): Supplier handles inland packing and export customs; buyer books freight and insurance. Good for experienced importers.
CIF (Cost, Insurance, Freight): Supplier pays freight and minimal insurance to destination port. Good for new importers who want one supplier-side cost. Verify insurance terms.
DDP (Delivered Duty Paid): Supplier handles almost everything, including import clearance and duty. Highest unit price but lowest operational risk for buyer. Good for first orders or small companies.
Rule of thumb What to Require from a Sourcing Agent in China: Start with DDP for first 1–2 orders until you understand landed cost. Move to FOB + forwarder for scale and control.
Find HS by product category. Use national tariff search tools. Duty rates vary by material and part function (electronics vs plastic parts). Always verify with customs or an experienced broker.
Commercial Invoice — exact unit price, currency, INCOTERM, HS code, origin.
Packing List — carton details, gross/net weights, dimensions.
Bill of Lading / AWB — shipping contract proof.
Certificates — CE/ROHS/FCC or test reports for regulated goods.
COO (Certificate of Origin) — sometimes required for preferential tariffs.
Wrong HS code → sudden back-duty and fines.
Missing test certificates → detained shipments.
Incomplete packing list → customs hold.
Under-declared values → huge fines and reputational risk.
Document check: Business license, export license, factory address, tax registration, major clients. Cross-check company name, contact, and bank details.
Sample & small run: Test sample first. Verify fit, function and packaging. Pay for sample shipping to replicate real cost.
Factory visit or 3rd-party audit How to Find a China Sourcing Agent: Use ISO audit checklists or paid factory audits (SGS, Bureau Veritas). Spot-check production line, workers, tooling, and process control.
Use AQL tables (e.g., AQL 2.5/4.0) for general quality acceptance.
Inspect items for dimension, function test, cosmetic defects, packaging.
Create an inspection checklist and require photo evidence before loading.
Sample QC checklist (short):
Quantity match (carton count)
Visual defects (scratches, color mismatch)
Functional test 10% on sample batch
Packaging integrity and labeling
Serial number / traceability check
Negotiate MOQ & unit price to get into FCL economics.
Optimize packaging (reduce volumetric weight for air; increase units per carton for sea).
Consolidate shipments (use NVOCC / consolidation services for LCL).
Use bonded warehouses or roll shipments to reduce duty timing and cash flow burden.
Negotiate longer payment terms to improve cash flow (30/70 → 30/70 after inspection).
Shop freight quotes regularly: rates change seasonally.
Insurance: insure for CIF value + 10% (covers freight + small variations).
Back-to-back contracts: supplier must maintain insurance and sign liability for packaging shortages.
Inspection hold: tie final payment to third-party inspection pass.
(You can copy these into your systems.)
EN
ar
da
nl
fr
hu
it
pl
pt
es
sv
de
cs
ga
ro
sk
tr
hi
ru
bn
Total landed cost = Goods value + Freight + Insurance + Customs duty + VAT (or local tax) + Local delivery / handling fees
Subject: DDP Quote Request — [SKU], Qty [X], Delivery to [CITY, COUNTRY]
Hi [Supplier name],
Please provide a DDP price to deliver [SKU description] qty [X] to [Full address]. Include: unit price, lead time, packing (units per carton), gross/net weight per carton, and whether you can provide CE/COC/COO. Please confirm earliest production lead time and sample availability. Thanks, [Your name & company].
Seller / Buyer
PO number
Invoice number
Number of cartons / units
Gross weight / Net weight / Dimensions
HS code per SKU
Notes: times and rates below are typical ranges for planning and comparison — actual quotes vary by carrier, season, carrier rotation and current market. I cite each row so you can link to sources or update later.
| Destination (example port/airport) | Mode | Typical transit time (range) | Typical sample cost range (illustrative; USD) | Source |
|---|---|---|---|---|
| Los Angeles, USA (LA) | Ocean FCL (20'GP) | 12–20 days (direct routes vary). | From ≈ $1,700–$6,000 per 20' (spot ranges fluctuate). | Freightos (Shanghai → LA transit/time & rate examples). |
| Los Angeles, USA (LA) | Air cargo / Express | 1–5 days (door-to-door 1–3 business days typical for express). | Air: $/kg varies greatly (samples show $X–$Y per 100 kg on Freightos route pages). Use express for urgent small parcels. | Freightos / DHL transit guidance. |
| Felixstowe (UK) | Ocean FCL | 47–61 days (example FCL transit ranges shown). | FCL from ≈ $3,400+ per 20'; LCL from ≈ $500+ per CBM (sample listing). | Freightos (Shanghai→Felixstowe route page). |
| Hamburg (DE) | Ocean FCL | 55–69 days (range shown for FCL to Hamburg). | FCL from ≈ $3,800+ per 20'; LCL from ≈ $570+ per CBM (sample listing). | Freightos (Shanghai→Hamburg). |
| China → Germany (rail) | Rail (China → Europe) | 13–18 days (China→Germany door-to-door rail). | Cost: between air and sea (rail per CBM/TEU varies; quote-by-quote). Use rail when speed > sea but cost < air. | Sino-Shipping rail guide. |
| Santos / Rio de Janeiro (Brazil) | Ocean FCL | ~27–56 days (varies by port/route; common windows ~30–60 days). | FCL estimates vary widely; sample FCL transit 30–56 days in market data. | FluentCargo / CargoRouter / Sino-shipping Brazil pages. |
| Sydney (Australia) | Ocean FCL | 29–38 days (sample range); LCL ~31–43 days. | FCL from ≈ $3,300+ per 20'; LCL from ≈ $600+ per CBM (sample). | Freightos (Shanghai→Sydney). |
Short interpretation / how to use:
Use FCL numbers for large orders (full container) to compute per-unit freight = container cost ÷ units per container. Use LCL / CBM numbers for small-volume shipments; allocate freight to units by cubic/meters or volumetric weight. For urgent small shipments use express (DHL/FedEx) despite higher $/kg. See Freightos route pages for live quotes and ranges (links above).
Caveats & market context:
Ocean spot rates are volatile and changed dramatically in 2024–2025; quote windows move quickly — use live freight marketplaces (Freightos) or ask 3 forwarders for current spot and pro-forma rates.
II. How to present the Routes table on your page (SEO + UX)
Put the table near the top of the transport/comparison section and label it: “Typical transit times & sample cost ranges (Shanghai → Major hubs)”.
Add a small disclaimer line under the table: “Example ranges — always request 3 live quotes; use this for quick planning.” — include a link to a live freight-quote provider (Freightos) to capture transactional intent.
III. Compliance & Execution Templates (copy-and-paste ready)
A. Commercial Invoice — mandatory fields (template)
Use this field list exactly. Put each field on your invoice header or invoice line as shown.
COMMERCIAL INVOICE
1. Invoice No.: ___________________
2. Invoice Date: YYYY-MM-DD
3. Seller / Exporter (Full legal name & address): ___________________
4. Buyer / Importer (Full legal name & address + tax ID/EORI/VAT/EIN): ___________________
5. Purchase Order No.: ___________________
6. Vendor bank details / payment terms: ___________________
7. Incoterm & named place (e.g., FOB Shanghai): ___________________
8. Description of goods: (clear, line-by-line; include SKU and part number)
9. HS code (6–10 digits as applicable): ___________________
10. Quantity (units) per line
11. Unit price (currency)
12. Total line value (currency)
13. Total invoice value (currency)
14. Currency of invoice (e.g., USD)
15. Country of origin (e.g., PRC/China)
16. Gross weight / Net weight (kg)
17. Number of packages / Carton count
18. Marks & numbers (package references)
19. Producer / Manufacturer address (optional but useful)
20. Signature & company stamp (where required)
Practical tip: Keep HS codes and description consistent between commercial invoice and packing list; mismatch triggers customs queries. (See “Packing list” below.)
B. Packing List — mandatory fields (template)
PACKING LIST
1. Packing List No.:
2. Invoice No.:
3. Seller / Exporter:
4. Buyer / Consignee (including full delivery address and contact):
5. PO Number:
6. Port of loading / Port of discharge:
7. Carrier / Vessel / Flight No.:
8. Number of packages (cartons / pallets):
9. Marks & Numbers (per carton/pallet ID):
10. Dimensions per carton (L×W×H cm) & gross/net weight (kg) per carton:
11. Total gross weight / total net weight:
12. Contents description per carton (SKU, quantity, units per carton):
13. HS Code (per SKU):
14. Special handling instructions (e.g., “fragile”, “keep dry”):
Practical tip: Include carton-level details and pallet configuration to speed up customs inspection and warehousing receiving.
C. Billable & customs-related lines you should include somewhere on docs
Freight and insurance amounts (if known) — helps customs valuation when Incoterm indicates seller-paid freight/insurance.
Commercial invoice must not understate values — under-declaration leads to fines and delays.
Important: HS code classification can be tricky. The examples below are typical starting points used in industry resources — always verify with customs tariff lookup or a customs broker for the final 6–10 digit code and the duty rate in the importer’s country.
Printed Circuit Boards / PCB assemblies (PCBA)
Typical candidate HS headings: 8534 (printed circuits / printed wiring boards) or 8542/8537 depending on finished assembly vs bare PCB. Multiple industry sources list PCBs/PCBA under 8534 / 8542 / 8537 variants — classification depends on whether the board is assembled and whether it’s part of a larger machine. Always confirm.
Injection-moulded plastic parts (general plastic components)
Commonly fall under Chapter 39 (plastics) — e.g., subheadings such as 3926 / 3926.xx for articles of plastics, or more specific numbers depending on use and material. For injection-moulding machine parts, parts of machines often fall under 8477 / 8480 etc. Use material + function to pick a heading.
Mechanical spare parts (general machine parts)
Often classified within Chapter 84/85 depending on machine category — example HS codes used in trade include 8479.90 (parts of machines with individual functions) or more specific subheadings tailored to the machine. Always match part function to chapter.
How to verify HS code (recommended steps):
Start with a detailed product description: materials, function, finished vs unfinished, where used.
Use authoritative online lookup tools (country tariff pages, Flexport HS search, or national customs tariff search).
If uncertain, ask the customs broker or request a binding tariff ruling from the importer’s customs authority (this provides legal certainty but can take time).
Keep classification notes in your PO / supplier emails for audit trail.
United States (CBP / HTS): US uses HTS (10-digit) and has additional country-specific rules (E.g., antimdumping duties, special AD/CVD). Verify with USITC/CBP or your customs broker.
United Kingdom (HMRC): Post-Brexit, use UK-specific tariff and EORI registration for import. Ensure VAT/EORI details are supplied on commercial docs. (Check HMRC tariff tool.)
Germany / EU: Use CN (Combined Nomenclature) and ensure importer has EORI; VAT reclaim / deferment options exist for businesses. Verify VAT & duty with TARIC.
Brazil: Higher import complexity and duty rates; typical sea transit times are longer and clearance can be slower — plan longer lead times.
Australia: Use ABF (Australian Border Force) resources for tariff and quarantine (some goods require AQIS / biosecurity clearance).
(If you want, I can expand any of these country notes into a full mini-section with example duty/VAT % — I’ll fetch live official tariff rates for chosen countries if you want exact current %s.)
Routes table (Shanghai → LA / Felixstowe / Hamburg / Santos / Sydney) with cited typical transit times and sample price cues.
Commercial Invoice & Packing List templates (copy/paste ready).
HS code example guidance and verification steps with sources.
Expand the Routes Table into a multi-country annex (US / UK / Germany / Brazil / Australia) with example duty/VAT% ranges and more granular port-to-port transit-time bands — I’ll fetch official tariff references and up-to-date market rate ranges. (Requires web.run — I already used it; say “expand routes” and I’ll fetch tariffs for the countries you want.)
Produce downloadable PDF / XLS versions of the Commercial Invoice and Packing List (formatted, ready to use) and attach them here for download. I can also add them to the landed-cost XLS if you want a single bundle.
Build a simple embeddable online landed-cost calculator (HTML/JS) using the formulas and example rows I made earlier (I can paste the code for you to embed on your site).
Q: Air vs sea — which saves money?
A: Sea saves when weight/volume is high and time is not urgent. Use per-unit landed cost to compare.
Q: Should I use FOB or DDP for my first order?
A: Use DDP for first order to avoid customs mistakes; switch to FOB later.
Q: Where do I find HS codes?
A: National customs tariff search tool; verify with broker.
Q: How to avoid counterfeit parts? The Ultimate Guide to Sourcing and Importing Essential Oils from China
A: Do supplier audits, insist on traceability and test certificates, and order pilot runs.
Q: How much buffer stock should I hold?
A: Buffer = lead time (days) × daily demand + safety stock (10–30%) based on supplier reliability.
Q: Who pays demurrage & detention?
A: Depends on Incoterm and whether booking was delayed; include demurrage terms on PO.
Q: When to use rail freight?
A: Mid-weight, mid-urgency shipments to Europe — faster than sea, cheaper than air.
Q: Can I under-insure to save money?
A: Not recommended — small savings can cost the full goods value on claims.
Q: How to handle customs inspections?
A: Provide docs promptly, respond to queries within hours, and have a broker ready.
Q: What percent of landed cost is usually freight?
A: Varies widely — for air it may be 20–50% of landed cost; for full container it often falls below 50% and keeps decreasing per unit as volume grows.
Contact us
Call Us: +86 193 7668 8822
Email:[email protected]
Add: Building B, No.2, He Er Er Road, Dawangshan Community, Shajing Street, Bao'an District, Shenzhen, China
@Darkhorsesroucing
