For small businesses, shipping from China to USA requires careful consideration of cost, speed, and customs regulations. With recent trade policy changes affecting small parcels, understanding your options is more crucial than ever. A clear strategy and a reliable logistics partner can turn this complex process into a smooth and manageable part of your business operations.
Key considerations for small businesses
1. The $800 de minimis exemption has changed
The most significant recent development for small businesses is the cancellation of the $800 duty-free exemption for shipments originating from mainland China and Hong Kong. This means:
- For commercial carriers (e.g.,FedEx, DHL):All parcels from China and Hong Kong now require payment of customs duties, regardless of value.
- For postal services (e.g., USPS):Shipments from China may now be subject to a tariff of up to 90% of the declared value, depending on recent legislation.
2. Choosing your shipping method: Air vs. Sea
Your choice of shipping method should be based on a balance of cost, transit time, and your inventory needs.
| Factor | Air Freight (Ideal for small businesses) | Sea Freight (Economical for bulk) |
| Cost | Higher.The cost per kilogram is significantly more than sea freight. However, it may be the most cost-effective option for smaller, lighter shipments. | Lower.It is the most economical option for large, bulky, or heavy items, especially those over 500 kilograms. |
| Speed | Fast.Transit time is typically 7–10 days. Express courier services can be as fast as 2–5 days. | Slow.Expect transit times of 30–40 days or more. |
| Volume | Best for smaller volumes.Ideal for items under 150 kg or for restocking popular products. | Best for bulk.Ideal for large, heavy, or high-volume orders. |
| Urgency | High urgency.Perfect for time-sensitive goods, like seasonal products, electronics, or samples. | Low urgency.Suitable for goods with a longer sales cycle where a longer lead time is acceptable. |
3. FCL vs. LCL: Optimizing sea freight for smaller operations
If your shipment is better suited for sea freight, you have two primary options:
- Less than Container Load (LCL):Your cargo shares container space with other businesses. It’s affordable for smaller volumes but involves more handling and takes longer due to the consolidation and deconsolidation process.
- Full Container Load (FCL):You rent an entire container for your goods. It’s more secure and generally faster than LCL, but only economical if you can fill at least half a container.
4. Why a freight forwarder is your best partner
For small businesses, trying to manage international logistics independently is often high-risk and overwhelming. A reputable freight forwarder can be invaluable:
- Expert guidance:They can advise you on the best shipping mode (air vs. sea, FCL vs. LCL) based on your specific needs.
- Negotiated rates:Freight forwarders leverage high-volume rates from carriers, passing the savings on to you.
- Simplified customs:They handle complex filings and paperwork, ensuring compliance and avoiding costly delays.
- Full-service options:Many offer “door-to-door” service (also known as Delivered Duty Paid, or DDP), where they manage the entire process, including customs clearance and final delivery.
5. Managing customs clearance and duties
Navigating U.S. customs is a critical step that requires careful attention to detail.
- Documentation:Key documents include the Commercial Invoice, Packing List, and Bill of Lading (for sea) or Air Waybill (for air).
- Customs Bond:If your shipment is valued over $2,500, you will likely need a customs bond.
- Harmonized System (HS) Codes:Ensuring your products have the correct HS code is essential for accurate duty calculation. A misclassification can lead to fines.
- Import Duties:Depending on the product, you may be subject to standard duties, and potentially additional tariffs from the ongoing trade war.
6. Minimizing risks and anticipating costs
- Packaging:Invest in robust packaging, especially for LCL, to protect your goods during transit.
- Insurance:Always purchase cargo insurance. The carrier’s liability is often limited and may not cover the full value of your goods.
- Plan for delays:Shipping is rarely perfect. Build buffer time into your inventory planning to account for unexpected delays from weather, port congestion, or inspections.
- Know your Incoterms:Incoterms (e.g., FOB, CIF) define who is responsible for different parts of the shipping process. Understanding these terms is vital to controlling your costs.
Conclution
By approaching shipping from China to USA with a clear strategy and trusted partners like Gorto, small businesses can efficiently manage costs, simplify imports, and ensure a smooth delivery experience that keeps their customers satisfied.
