How to Import Sunglasses from China
A Complete Guide: How to Import Sunglasses from China to India, China is the not only the world’s leading manufacturer of sunglasses and eyewear but also the largest potential consumer of such products. With the increase in the number of people and their standards, consumers are more attracted towards the higher quality of sunglasses. People are giving more importance to the protection of their eyes, which results in increasing penetration rate of sunglasses in China. The pursuit of great comfort and attention towards ornamental qualities of spectacles, many sunglasses brands, and luxury brands are expanding their sunglasses series in China.
Procedures and Formality of How to Import Sunglasses from China to India
Following are some procedures and formality required to import Sunglasses from China. After globalization of trade by GATT (General Agreement on Tariff and Trade) the procedures and formalities to import Sunglasses and Eyewear are same in most of the countries.
Many countries like India attract anti-dumping duty on the importing of Sunglasses and Eyewear. As per GATT WTO members can take an individual decision on imposing an anti-dumping duty to ensure fair trade rather than protecting domestic industry.
Hazardous wastes management handling and Tran’s boundary movement rules
This requires preventing the country from becoming a dumping yard for industrialized nations. So, any importer who wants to import Sunglasses from China should follow the terms and conditions of such Hazardous wastes management handling and Tran’s boundary movement rules before actual import takes place.
Permission from the environment department
Permission from environment department is essential to import Sunglasses from China, as these products material consists plastic and glass. In India ministry of environment and forest (MOEF) is authorized government department to regulate plastic and glass materials including importation.
Test report of analysis from laboratory
In order to import Sunglasses and Eyewear from China, the importer must obtain a test report from laboratory authorized by importing country as these articles’ material consist of plastic.
License from Foreign Trade Office
In India, DGFT (Director General of Foreign Trade) is the governing agency that issue licenses to importers.
RSP based Valuation
As some plastic articles fall under RSP based valuation to estimate import tax, so it is essential for import of Sunglasses and Eyewear.
General Requirement to act as an Importer in India
In India as well as in some countries, government registration is required to become an importer in the country. Foreign trade government office of that country is responsible to issue an authorization to the importer.
Here are some essential steps that to be fulfilled in order to start a business of import sunglasses from China in India.
- A firm or company should be registered in India.
- For registration, you can get a license from Municipal or Corporation.
- Need to have current bank account combing with SWIFT code.
- Tin required- tax identification number is next essential things to be required. And to obtain Tin you need to register with the State Tax Department or Central Sales Tax.
- IEC code (import-export code) – while importing or exporting goods from China to India or vice-versa, there is a necessity of IEC code which is a 10 digit code, issued by Director General of Foreign Trade, Government of India or Ministry of Commerce to Indian firms or companies.
Finding the right Sunglasses and Eyewear manufacturers in China
In China, manufacturing is segmented like major sunglasses and eyewear manufacturers are mostly in the cities of Wenzhou and Linhai and Zhejiang province, south of Shanghai. Sunglasses are predominantly manufactured in Wenzhou and have numerous trading companies, hundreds of manufacturers, and suppliers.
To make import a little easier, we have listed following points that everyone should consider before making a decision on how to import sunglasses from China:
The first and utmost things which importer should need to consider if the supplier or manufacturers of sunglasses are experienced in manufacturing products according to the applicable regulations to your country, city, and home market? But the truth is that most suppliers or manufacturers are not in compliance. The best way is to filter suppliers, at an early stage, as importers are required by law to ensure that all imported Eyewear and Sunglasses are compliant with all applicable labeling requirements and product safety standards. To make this entire process quick and painless, the importer should request for product compliance certificate document.
For Eyewear and Sunglasses this may include any of the following:
- FDA Declaration of Conformity or Test Report
- Personal Protective Equipment Directive Declaration of Conformity and/or Test Report, as this may vary from country to country.
Social Compliance Audit Reports and Product Line Audit Reports
For importers, it’s crucial to have these certificates which are at the time of inspection.
- A Product Line Audit report indicates that the supplier manufacturers to a certain product standard, in terms of defects.
- Social Compliance Audit report indicates that the supplier whom with an importer is looking to work is treating its workers fairly well, paying them good, and providing them a healthy environment for living. In addition to this, an importer should also look for other two factors:
- A Supplier should have a low amount of registered capital. As a company with higher registered capital is an indication of a relatively high supplier.
- If the supplier is manufacturer also, then he should clearly specify their business scope, i.e. they have to clarify that they are producing themselves and not using any middleman from the start.
As sunglasses and Eyewear are very customizable, i.e. the same design on the same frame can be produced or mold using different materials and components. So, before starting manufacturing, importers should provide manufacturers a set of product specifications according to their desire. Ultimately, materials and components are the factors that can affect the unit price.
Let’s dive into the things that an importer needs to look before contacting manufacturers.
- Materials of Frames
- PP (polypropylene)
- Stainless Steel
- Material colors
- Materials of lens: Glass, Polycarbonate, Plastic
- Polarized or not
- Standards: EN ISO, ISI, etc.
- Will the lens be Anti-reflective or not
- Thickness in mm
- Shape and Color
- V protected or not
- Stainless steel must be of higher quality
- Packaging of Products
- Standard or Customized Packaging
- Logo Design
- Printed on lens
- Frame Printed
MOQ (Minimum Order Quantity)
There is hardly any supplier in the world that does not set any MOQ requirement. Every supplier in the eyewear and sunglasses industry sets their own limits and MOQ requirement like this:
- 1000 – 3000 pcs per order
- 200 – 500 pcs per model that are non-customized
- 200 – 500 pcs per color or pattern that is non-customized
The requirements tend to be higher when buying custom-designed frames, or when you have ordered frames with a custom Pantone color as these don’t come into the standard sunglass or eyewear category.
Indian import duties and custom values
The customs fee depends on the type of product you are importing from China. The basic duty on import of sunglasses and eyewear in India is 10% and the import duties and other taxes are calculated based on the CIF price that is cost, freight, and insurance. It includes the value of a product, shipping, and insurance. So the import duty is calculated at the percentage of CIF price.
Other fees and taxes
Before you order from Chinese supplier you have to make sure to confirm which taxes and rates apply to your imports like lending charges, countervailing duty, CESS and CVD all ranging from 1 to 12%.
How to know the quality, quantity, or contents of goods before import?
In India, Bill of Entry; a legal document needs to be filed manually or electronically with Customs Department. After filing Bill of Entry the importer or customs broker requests the concerned custom appraising officer to mark open examination order for personally inspecting the cargo. Then the goods are inspected completely or partially as per the requirements and prepare a report on examinations of goods. The samples of are also drawn for quality and quantity checks, once after satisfying, the importer can proceed further in completing import customs clearance procedure to take delivery of cargo.
- TT (Telegraph Transfer)
It is a standard bank transaction which placed through internet bank or by a local bank branch
- Deposit payment (35%)
2. Production get starts
3. Production completed
4. Quality Inspected and Compliance testing
5. Buyer approves consignment
6. Delivery to the Port of Loading (e.g. Shanghai)
7. Bill of Lading Scan Copy provided
8. Loading as well as Shipment of goods
9. Balance payment (65%)
10. Seller sends original Bill of Lading and other freight documents (required to release cargo in Port of Destination)
- Letter of Credit (L/C)
It enables the buyer to add an extra layer of security, by forcing the supplier/ exporter to fulfill certain requirements before the funds are transferred. Under L/C, the bank will automatically release the funds to the supplier and then credited the buyer automatically once conditions/ requirement have been fulfilled.
- The seller and buyer sign a Sale Agreement that states the conditions to be fulfilled before the payment shall be released.
2. The buyer contacts its local bank and applies for L/C.
3. The buyer’s bank contacts the seller’s bank (in China) and presents the Letter of Credit.
4. The seller’s bank contacts the seller and shows a payment advice
5. Production get starts
6. Production completed
7. Quality Inspected & Product Testing.
8. Deliver to the Port of Loading and Shipment.
9. Provides the required documentation to their local bank (e.g. Quality Inspection Report, Test Report, and Freight Documents).
10. Then funds are released, if the conditions are fulfilled (i.e. the right documents are presented).
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