How to Import Car Accessories from China?
Importing Car Accessories from China
Auto parts are also called car accessories, car parts, and auto accessories. As a country with large-scale of automobile manufacturing industry is of great importance to China. Importing car parts and accessories at the competitive price from China is beneficial. Import from Chinese auto parts suppliers or vendors you need to solve some issues, such as finding reliable auto parts manufacturers or factories, learning how to import automobile parts from China and distinguishing the Chinese suppliers who don’t have the capacity to produce high-quality parts and export bad quality products to overseas companies or customers. Poor in quality and received nothing after payment is known risks to import car accessories products from China, so it is must know end to end about “How to Import Car Accessories from China?”
Auto Parts, You can Import from China to India
An auto part includes body and main parts, chassis products, electronics and electrical parts, interior parts, and other miscellaneous auto accessories. Most of the auto parts can be imported from China manufacturers or online shopping website, but some of the parts cannot be exported from overseas companies due to patent protection reason or other import and export restrictions issue.
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Main Brands You can Import from China to India
FORD, LAND ROVER, ASTON MARTIN, JAGUAR, MAZDA, VOLVO, LINCOLN, MERCURY, CADILLAC, SUZUKI, BUICK, SATURN, CHEVROLET, HUMMER, PONTIAC, SUBARU, OPEL, DAEWOO, OLDSMOBILE, SAAB, MERCEDES-BENZ, SMART, MAYBACH, CHRYSLER, JEEP, DODGE, PLYMOUTH, RENAULT, NISSAN, INFINITI, TOYOTA, LEXUS, ACURA, HONDA, HYUNDAI, PORSCHE, LOTUS, ROVER, MORGAN, SSANGYONG, MITSUBISHI, B.M.W, ROLLS-ROYCE, MINI, VOLKSWAGEN, BENTLEY, AUDI, LAMBORGHINI, SEAT, BUGATTI, SKODA, FIAT, FERRARI, MASERATI, ALFA ROMEO, CITROEN, PEUGEOT
Main Auto Parts & Accessories Imported from China to India
There are common auto parts and accessories imported from China to India but not limited to:
- Rims products and hubcap, front and rear spoiler, door handle products, hinge, car light and lamp and rearview mirror;
- Car sensors, car starter, and cable for car accessories;
- Carpet, seat parts and products for car, baby and children car seat, seat fastener, and other auto seat parts;
- Braking products and hose products, cable products, auto valve, auto cylinder, air intake housing and manifold, camshaft parts and products, connecting rod products, cylinder head and cover parts, different kind of gaskets for car;
- Engine parts, harmonic balancer, auto parts cover such as valve cover, water pump products, water pipe, car radiator, cooling fans for auto, oil filter and gaskets, oil pan products, oil pipe and pump, strainer, exhaust, manifold, header, muffler, catback, catalytic converter products, clamp, flange, spacer, bracket and gasket, intake manifold products and gasket;
- Heat shield products, fuel, and air filter products for auto parts, cooler products, carburetor, choke cable, fuel cap and fuel cell components, auto fuel distributor and fuel injector products, fuel pump and gasket, throttle valve, throttle body and other throttle parts;
- Suspension parts, spring for auto parts, steering arm and parts, gearing and pump products, flywheel auto parts, air-condition products for the car, bearings, fuel vapor hose products, sun visor, O-ring for auto parts, and so on.
Benefits of Buying Car Accessories from a Reliable Manufacturer
To import high-quality auto parts from China, the first step is to find a reliable manufacturer in China. If you are a small business owner and want to import low quantity from China, please try to find your target products on the online wholesale website of China.
A Trading Company from China offers smaller volumes compared to manufacturers. Sometimes the MOQ requirement is as low as 5 to 10 pcs per auto part model. However, these Trading Companies are not working for free and their prices are often two to three times as high compared to if you would’ve purchased the auto parts directly from the manufacturer. Buying directly from the manufacturer comes with some obvious benefits. The product selection is wider and the prices are lower due to the lack of middlemen. However, it’s not viable for most small businesses importing car accessories from China to Indian importers. The reason is spelled “MOQ”, or “Minimum Order Quantity” Requirement.
A supplier must produce a certain minimum quantity of a product in order to make the production of car accessories run viable. This “minimum quantity” tends to be 300 – 500 pieces for each part. Here are the following benefits of buying from china manufacturers directly:
- Lower prices
- Product certification compliance (when required)
- Full product availability
- Low MOQ requirements (5 – 10 pcs per product)
You are reading “How to Import Car Accessories from China?”.
Price and Quality of Auto Parts Made in China
After selecting, auto parts from your potential manufacturers and suppliers. The next goal is to import car accessories from China is to make more money. So, getting a lower price is the most important thing for most of car accessories importers. As the saying goes “what price, what goods”, but, we still can find the right one at competitive price and quality.
The Price of Auto Parts Made in China
1/3 or 2/1 of the Ex-work prices in most of the countries is the prices import from China. Wenzhou and Yinwu auto parts factories can provide auto parts at a low price but the quality of products are not of good reputation. Manufacturers in Shanghai always offer high-quality products but their prices are not cheap. For example, a carburetor selling on Amazon and eBay, the price is USD100, but the Ex-work in China is 23USD.
Procedures to Import Car Accessories from Chinese Manufacturers to India/How to Import Car Accessories from China?
Before placing an order to China supplier you should know about the process of importing from China and you also need to know something about export & import tax and customs charge.
- Need to place an order with your Chinese supplier.
- Your supplier will ask you to pay the down payment (30%/100%) before they arrange your production.
- You pay the deposit for your car accessories purchase order.
- The manufacturer produces your products.
- You have to arrange a third-party inspection to audit and check products for you.
- You approved the products and pay the balance payment.
- Your sourcing agent will prepare documents for customs clearance.
- Customs clearance shipped to China Customs.
- Pick up and loading your goods from China port.
- The boat or airplane leaves China port to destination port.
- Goods are in transit.
- Seller/supplier shows you the bill of lading copy, and you pay the balance payment.
- Supplier received the money and release bill of lading document, Commercial invoice, and packing list to you.
- Your agent helps you to do customs clearance and pay the tax or customs charge, shipping fees.
- Land transportation from your port to your company warehouse.
- You receive the car accessories imported from China and feel happy.
To Import Car Accessories from Chinese Wholesale Suppliers to India
The small business owner generally imports small quality in stock, and they do not care if the supplier is not a manufacturing company. You can learn how to import car accessories from Chinese manufacturers.
If a supplier tells you that he/she is a wholesale supplier, it means that he/she buy products from other suppliers and sell it to you. You can find this kind of supplier on Google or through products sourcing agent, purchasing company and trade company. Tell them your need and interest.
Import Minimum Quantity from China for Small Business
If you are placing order less than 500USD and shipped via international express, you can save some money on China customs fees. Products importing from China, their size and weight should not be too big. And the value of goods should be the higher the value, the better. We don’t suggest small business importer import products via express if the ratio of shipping cost/value of goods is over 20%;
To Discover New Car Accessories in China
New and hot products always can make more money, car accessories are no exception. We will describe you that how to discover new and hot car accessories on China B2B website.
Made in China
Open made in China website and click “All Categories”, “Auto, and Motorcycle Parts & Accessories”, you will see the “Hot Searches” at the right side of the page. Such as oil filter and air filter, shock absorber, brake pad, universal joint, brake shoe, car lift and auto horn.
You are reading “How to Import Car Accessories from China?”.
Minimum Order Quantity for Car Accessories in China
MOQ (minimum order quantity) is one of an important factor to affect you in making the decision to import car accessories from China to India. 90% of the sellers have a threshold for MOQ, such as MOQ10 and MOQ 100.
Products in Stock
If the car accessories you are interested in buying from China is the product off the shelf and in stock. Then try to negotiate with your supplier for getting a lower MOQ (minimum order quantity). Most of the suppliers are glad to sell you the products if you are paying a higher but reasonable price.
Custom Car Accessories
If your car accessories are custom products, lead time and MOQ is necessary. The 70% of Chinese manufacturers request you to place an order with a minimal value of USD5000 for custom manufacturing parts.
Free Accessories Samples from Chinese Suppliers:
When you have discovered supplier in China who can export car accessories for you with a reasonable price, but before giving a large purchasing order, you ask for a sample is reasonable. Most Chinese supplier can provide free sample for the new customer if the value of the product is not large but you need to pay the shipping cost. As an outstanding manufacturing Sourcing Services Company and products sourcing agent in China will offer a free sample and free shipping cost to some of the overseas companies.
If your supplier is not giving you a free sample and shipping cost, then ask them to give you a promise that refunds the sample fees to you in your next purchasing order in future.
Note: Do not waste time and money on a supplier who asks you to pay three or four times for the unit cost for a free sample. For an overseas company who sources sample from China, please don’t consider that supplier who asks for an unreasonable charge for the sample.
Payment Terms When you Import Car Accessories from China to India
Good payment terms can give you some assurances when you import from a Chinese supplier and received the goods before sending a payment, but, supplier hope importer can pay when they place a purchase order. Here are the common payment methods for Indian importers to purchase from a new Chinese supplier.
- Full payment when you place an order. After receiving your payment the supplier starts to produce your desired products or ship the inventory to you. Most of the Chinese supplier operates like this for small business.
- Giving 30% or 50% advance payment before producing your products, and pay the balance payment after finishing manufacturing.
- Giving 50% advance payment before producing your products, and pay the balance payment after showing a bill of lading.
- Giving 50% advance payment before producing your products, and others in 45 payment days.
Payment Methods to Pay Chinese Suppliers When you Import in India
Selecting the best payment methods is also an important part to import from China. Here are some methods to pay Chinese supplier:
- Letter of Credit – For larger order and high-cost of payment fees
- Telegraphic Transfer or Bank Transfer (T/T)- For any business
- PayPal – For small business
- The Western Union -For small business
Modes of Transportation for Importing Car Accessories from China to India
There are some basic modes of transportation to import products from China. They are sea transportation, truck transportation, heavy air transportation, and international express.
- Sea transportation also known as boat shipment, it is the most economical shipping ways and available for India importer. But the shipping cost depends on who is your forwarder, where is your Chinese supplier, and what is your destination?
- Truck transportation is for China’s neighbors only.
- Heavy air transportation is a good choice to deliver the car accessories goods over 100kgs.
- International express is the fastest shipping ways to deliver your car accessories goods less than 100kgs. But the cost is very high and depends on the relationship between supplier or customer and the express company.
Customs and Taxes When Importing Car Accessories from China to India
Importing from China involves various taxes. The applied taxes are calculated, vary depending on which country the products are imported to.
Customs duty is a variant of Indirect Tax which is applicable on all imported goods and a few goods exported out of the country. Duties levied on import of goods are termed as import duty. Many countries levy customs duties on import/export of goods as a means to raise revenue and/or shield domestic institutions from predatory or efficient competitors from other countries. Customs duty is levied as per the value of goods, weight, and other such criteria according to the goods.
Customs Duty in India:
Customs duty in India is defined under the Customs Act, 1962 and enables the government to levy duty on exports and imports, prohibit export and import of goods, procedures for importing/exporting, penalties etc. All matters related to customs duty fall under the Central Board of Excise & Customs (CBEC). The CBEC is a division of the Department of Revenue of the Ministry of Finance. CBEC formulates policies that, concern collection or levying of customs duties, customs duty evasion, smuggling prevention, and administrative decisions.
Types of Customs Duty:
Customs duties are levied almost on all goods imported into the country. Import duties are not applicable to items including lifesaving drugs/equipment, fertilizers, food grains etc. Import duties are further divided into basic duty, additional customs duty, true countervailing duty, protective duty, education cess and anti-dumping duty or safeguard duty.
Basic Custom Duty
Basic customs duty is levied on imported items that fall under the ambit of Section 12 of the Customs Act, 1962. These duties are levied at the rates prescribed in First Schedule to Customs Tariff Act, 1975, under the terms specified in Section 2 of the act. The levied rate may be standard or preferential as per the country of import. In India basic customs duty levied on import of goods is depends on the HSN codes of the goods. The HSN codes of car accessories are 87089900, 85177090, and 94019000. Basic customs duty on import of car accessories in India is 10%.
Additional Customs Duty (Countervailing Duty (CVD)):
This duty is applied to imported items under Section 3 of Customs Tariff Act, 1975. It is equal to the Central Excise Duty that is levied on goods produced within India. This duty is calculated on the aggregate value of goods including BDC and landing charges. The CVD on the import of car accessories is 12%. And special customs duty is levied at 4%.
Protective duty is imposed to shield the domestic industry against imports at a rate recommended by the Tariff Commissioner.
This duty is levied at 2% and higher education cess at another 1% of the aggregate of other customs duties.
Anti-dumping duty may be imposed if the imported goods are at below fair market price; however, the Chinese government has provided certain industries and/or domestic manufacturers with subsidies. This means that the relevant Chinese manufacturers are allowed to sell products below the market price.
An Anti-Dumping Duty must take seriously since these are often in the range of 40 – 60% (as a comparison, the average duty rate is around 5% in most western countries).
Safeguard duty is applied if the government feels that a sudden increase in exports can potentially damage the domestic industry.
In India, IGST is applied to the imported goods. The amount of GST applied is depends on HSN code and GST on HSN code 87089900 and 94019000 is 28% and 85177090 is 12%.
Now, hire a professional customs broker agent who will take care of all the document and responsibilities of calculating payment of taxes, duties, excise, handling charges, transportation cost, and communication with other authorities.
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