China’s six major issues

The cheaper and quality-increasing Chinese goods occupy nearly 70 – 80% of the Malaysian market, and with the convenience of the Internet, “anyone and everyone can import” is more becoming.

With the implementation of several policies in Malaysia in 2017 and the official launch of Alibaba in Malaysia, the implementation of the DFTZ (Digital Free Trade Zone), ensure that e-commerce will explode in the next few years, and the era of small and micro enterprises will come.

If we are to take this journey, how do we start? Many people think of importing and selling goods from China, but because of many factors, many people are unable too.

Today we will talk about the six issues of Chinese imports and how to treat the correct attitude of Chinese imports.



Can’t find good supplier

Its implementation is well-developed in the Internet. Finding vendors is not a big problem. China’s major platforms such as Alibaba and global source are very developed. There are many ways to find a good supplier, for example, look at their number of transactions. Customer evaluation and so on, and this kind of platform has been supervised very well for several years. If used properly, it is not difficult to find high-quality suppliers.

China has many world-scale wholesale markets. The most famous are:

Zhejiang Yiwu Small Department Store Wholesale City

Guangzhou Humen Garment Wholesale City

Guangdong Zhongshan Lighting Wholesale City

Shenzhen Huaqiang North Electronics Wholesale

There are many places that are not listed. Actually, you can check online or with some experienced friends around you. Buying a plane ticket directly to go there for field trips and on-site purchases can be a good way.



The transportation cost is too high and too complicated

The fact that international transportation involves a wide range of aspects and the complexity of the process has become one of the reasons why many people are afraid to import. China’s transportation to Malaysia involves warehouses, customs declarations by Chinese customs, shipping companies, Malaysian customs, warehouses, road delivery and so on. It is a very verbose, complex, and unspoken rules that many industries need to adapt to.

However, there are some Chinese-Malaysian transport lines on the market today, which are already the tedious things that can help you solve all these problems. Finding a good transportation company will become your key to success.

The services provided by these transportation companies are generally similar and the prices are almost the same. Therefore, service attitudes have become the key. Because such transportation companies have long been dealing with China, they generally know very well what we need. Therefore, it is a consulting information. The good pipeline.

Therefore, a person who can always care about our transport companies, becomes a very important person. We must check when the goods arrive in Hong Kong, example which goods can be shipped, help us remittances, the connection of suppliers, the GST plan, and so on., that can bring a multiplier effect to our work.

Choosing a transportation company is absolutely the most important service quality. If there is ten questions and nine of them cannot be answered, even if the price is too cheap, it will be useless, so as not to delay major events for small money.



The tedious steps of international remittances, company accounts do not know what to do

If people who have handled international remittances will know that international remittances seem to be a profound knowledge, what is the difference between the exchange of U.S. dollars and the yuan? How do you observe the movement of the exchange rate? Why did I go to the bank to send U.S. dollars to China? In the end, the auditor asked me for K1 form. Why does Bank Negara ask me to report remittance information?

If we are importing goods that are not too bulky today, all these problems can be solved by the transportation companies. The transport companies that we mentioned above, which specialize in the China-Malaysia line, generally provide remittance services. The fee is very cheap, and the exchange rate is much better than that of the bank. If our company has GST registered, some of the transportation companies can also provide us with a purchase tax invoice, which directly saves a lot of documentation.



What is wrong with the goods?

A story was circulated a few years ago. A Malaysian businessman purchased a container of shoes from China. The goods arrived in Malaysia once a day. The merchants could not wait to open the container and saw the full shoes. After a closer look, the entire container’s shoes were only “Right foot”, and do not have “left foot”, when the businessman rushes to contact the supplier, the reply is “Oh, I didn’t know you gone purchase for both feet, I taught it was for Right Side only. Anyway what size do you want for the Left Foot?

I don’t know if this story is true or false, but it does not state out that this will happen. Generally, there are several ways to avoid this problem.

Go to the supplier factory or go to the site to confirm that it is a real factory.

During the first purchase, the supplier sent a person to check randomly (randomly checking) and shipped it to Malaysia.

Look for a third-party inspection company to go to the company’s warehouse for inspection. If it is found to be wrong, return it immediately.

These practices suggest that you can do it several times in the first few steps, and then you need not do it after determining the professional ethics of the supplier.

What about quality problems?

In the past, “Made in China” has become a symbol of “low quality” in many people’s minds. However, with the rapid progress of China in recent years, the quality of “Made in China” can already be comparable to many European and American countries, and it even has nothing to do with it. Yet because of too many manufacturers, resulting in the uneven quality of the goods.

When we go to China for procurement, the supplier may tell us that “this product has a two-year warranty period and if there is a problem, it can be brought back to us for warranty.” A handful of goods can be brought back to China from Malaysia because of the high cost and because Chinese customs are very strict about importing goods from China. There is hardly a single transportation company that can charter and return businesses to China, so don’t trust the “warranty”.

In general, how do we solve this problem? First, our profit margin must be sufficient to cover these warranted goods. One thousand pieces of goods must have a damage rate of 3 to 5%, so we must take it into account. The second solution is to talk to suppliers and ask them to give them more preparations, that is, to provide a buffer unit for the warranty.

This article is more suitable for some beginners importer entry, in the future will add more intermediate and advanced import knowledge, like our Facebook Page “CIEF Worldwide Sdn Bhd” in order to get more information.

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