Importing Prefab Home from China – 10 Must Read Points

Importing prefab home from China is not as simple as you might think. Some people think they will only have to place the order to the correct supplier, pay the price and receive their prefabricated home. Well, that is not the case.

This process is complicated and may involve various technical things that you might not even know before. So, to help you, I have written this article covering the top things you should know when importing prefabricated homes from China. So, let’s begin.

1.   Learn Your  Rights when Importing from China

Whenever you purchase goods from overseas, you become an importer. Couriers such as DHL, UPS, and FedEx can deliver small packages meant solely for personal use or of low value to your doorstep.

As a result, you can save time and money. But with large items like prefabricated homes, you will have to contact the suitable courier willing to deliver it to your doorstep.

As a business or individual, you must determine whether you have the right to import commercial goods into your country before purchasing those goods.

2.   Verify Your Country’s Laws

It is prohibited to import some goods. Various countries have different lists of prohibited goods. Be sure that your government has not imposed any restrictions or regulations on the prefabricated home you intend to import.

You could end up paying quite a bit in penalties and fines if you import unsafe or unhealthful goods. Such goods might end up being destroyed or at least seized.

3.   Do Proper Documentation for Importing from China

You should first determine if you need any permits or licenses while importing prefabricated homes in your country. These may not always be necessary.

For example, different departments of the U.S. government will handle the application process for these programs. So, if you are in the United States, the documentation process might be a bit easier for you.

Importing Prefabricated Home from China

4.   Calculate Landing Cost & Duty Rate

You need a 10-digit tariff classification number for each item you import. Combining these numbers and the Certificate of Origin (in this case China) determines the duty rate on imported goods. Then figure out the land costs.

Please take the time to read the Incoterms and calculate the total landed cost of your order before placing it. For example, FOB is the combination of the three terms.

  • Find out the price of the product from the supplier.
  • Ask the freight agent for the shipping charges.
  • Receive the customs clearance, duty & tax, and land transportation charges from landing to the warehouse.

Getting landed costs earlier is imperative; no one wants to lose customers or earnings. Consider ways to minimize costs if they’re higher than anticipated.

If it’s within your budget, you can move forward with the process. However, as a prefabricated home is a bulky product, you may have to pay the high land cost, depending on the size and weight.

5.   Find the Right Supplier in China

Compare the quality, delivery time, and price from different suppliers selling the prefabricated home. Also, identify the shipping terms you will use with the vendor, shipper, or exporter before placing your order.

Once you select your supplier, you should request a Proforma Invoice that includes harmonized system numbers, descriptions, and values for each prospective purchase. The packing list must show the weight and dimensions of your package along with the terms of your purchase.

6.   Check Minimum Orders & Shipping Agreements

Companies will have different minimum orders and shipping agreements. Companies in China will usually require a minimum order of 10,000 units per order for smaller products.

However, in the case of a prefabricated home, you may even get a single product as it is a bit costly. However, if you want prefabricated homes in bulk, you will have to pay less per piece. Usually, Chinese exporters require an initial deposit of 30 to 50% to begin production.

7.   Choose Transportation Mode from China

Once you have settled all issues relating to your product, supplier, and sales agreement, you will need to plan your international transport. You will first need to determine whether you will be using air or maritime transport.

The Incoterm agreement will establish that, if not already done so. Before choosing, it’s still necessary to consider the advantages and disadvantages of using air versus maritime transport, such as price ranges and timeframes.

 Importing Prefabricated Home from China

8.   Keep Necessary Documents

Importing a prefabricated home from China may require various documents, such as shipment bills, transport bills, customs declarations, insurance policies, and sale contracts. Keeping these documents will prevent you from any additional issues.

9.   Customs When Importing Prefab Home from China

Getting customs clearance from a government agency allows an individual or company to import goods into a country from another country.

Importing from China is a complex process that requires customs clearance. By not providing the proper documentation and following the correct procedures, your goods are at risk of detention and examination, resulting in delays and additional costs.

The worst-case scenario is that custom seizes your prefabricated home, destroys it, and sells it at auction. The majority of Chinese goods don’t require an import license to enter the various parts of the world.

However, obtaining clearance from customs requires you to follow the necessary entry, transportation, valuation, and classification procedures. According to the value of your shipment, customs processes, costs, and requirements differ.

10.    Customs Broker Arrangements

You must arrange for your customs broker to clear your prefabricated home through customs when they arrive. Your shipment will be ready for pick up once everything is in order.

If you choose to have your package delivered to your door, you can wait for it to arrive. However, you will have to pay more shipping costs for door-to-door service.

It is best to send an email to your supplier as soon as you receive the product and verify the quality, packaging, and labels. Tell them about the prefabricated home you have received but are not yet reviewing. Tell them you’ll get in touch after reviewing the items and let them know about the quality.

We hope this article helps you with making an important decision on importing prefab homes from China.

To find 50 Prefabricated Home Builders in China: Click here!

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