Import Computer Parts from China
A Complete Guidance to Import Computer Parts from China
China has revamped its industrial and technological policies and becomes a major producer of computer hardware in the world. Since there is a high demand to import computer parts from China, In 2000 computer hardware production grew to $23 billion. China becomes the leaders in the global computer in the industry through the strong support of government and industrial technology policies.
Regulation to Import Computer Parts from China
Import of Items Containing ODS Substance:
Import of items contains ODS substance is based on the terms and conditions of Ozone Depleting Substance rules and regulations and foreign trade policy of importing country.
RSP based Valuation for Import of Computer Parts from China:
Some of the items under computer fall under RSP based valuation to estimate import tax. RSP means Retail Sale Price, the maximum price at which the excisable goods with local taxes, freight and other charges sold to the ultimate consumer.
Import of Computer Hardware Related to Weights and Measures:
Import of weights or measures, either singly or a part or component of a computer that does not conform to the standards of weights and measures as prescribed under the Legal Metrology Act of importing duty. If any imports of weights and measure, defined under the Legal Metrology Act 2009 is subjected to compliance with provisions of the said act and the rules made thereunder.
Import of Computer Accessories Related to Explosives:
If any import of computer parts and accessories related to explosives has taken place, necessary permission from Controller of Explosive under the explosive act of importing country has to be obtained.
Some of the importing items under computer attract anti-dumping duty. The reason for anti-dumping duty is for rectification of trade, the destructive effect of dumping and re-establishes fair trade.
Condition as per Hazardous Waste Management, Handling, and Transboundary Movement rule:
Each country has their own foreign trade policy to Import Computer Parts from China into their country. However, most of the countries have hazardous waste management, handling, and Transboundary movement rule that regulates imports and consumption of computers part of their country. The importer should follow the terms and conditions of such hazardous waste management, handling, and Transboundary movement rules before actual import takes place.
Permission from Environment Dept.: Almost all countries have environment Dept. to regulate the importation, consumption of materials that affect the environment. Permission from such Dept. is essential. In India, Ministry of Forest and Environment (MOFE) is authorized government department to regulate such materials.
Test Report of Analysis from Laboratory: The importer must obtain a test report from laboratory authorized or governed by importing country. A necessary sample of imported computer hardware is drawn as per the procedures and rules of importing country and submits to the authorized laboratory and obtain an analysis report.
Foreign Trade Office License: Most of the countries insists foreign trade license issued by the foreign trade office of importing country to import computer hardware. So kindly contact whether your products required the license or not.
Quality Standard of Importing Country: Importing of computer hardware require the quality standard approval of government agencies at importing country. The importation of such items is subjected to their compliance with given approval certificate from the quality approval authorities of importing country.
Noise Standard: Import of computer hardware is subjected to noise standard of the environment protection rules of importing countries. The importer needs to contact the necessary government agency to collect accurate information.
Air Emission Standard: Import of computer hardware is subjected emission standard of the environment protection rules of importing country. The importer must contact the necessary government agency to collect accurate information.
Registration required to act as an Importer
- To act as an importer, a company or a firm should be registered. In India, government registration is required and can get a license from Municipal Corporation.
- Need to have a current account combined with a SWIFT code.
- Tax identification number (TIN) is required to import goods and to obtain a TIN you need to register with the State Tax Dept. or Central Sales Tax.
- In India IEC (Import Export Code) required and it I obtain from the office of Director General of Foreign Trade Office (DGFT) to operate as an importer in the country. It is a 10 digit code necessary to import or export goods from China to India or vice versa.
Procedures to Import Computer Parts from China
- The import shipment has taken place as per the mutual agreement between the importer and exporter.
- Pricing, quality specification, terms of payment, term delivery, and mode of transport and other terms and condition are mentioned in purchasing order and import shipment of computer hardware is affected accordingly.
- Completion of necessary import document a customs clearance procedure at importing country is required either by an importer’s customs broker or importer directly.
- Now import entry document along with the carrier’s document, i.e. bill of lading, commercial invoice, packing list, certificate of origin and other required documentation are needed to fill and necessary import procedures need to be completed to take delivery of imported goods.
Certificate of Origin: The source of origin of imported computer hardware is required in almost all countries to avail exemption on import duties and taxes. It is issued by concerned authorities in exporting countries.
How to Select Reliable Computer Hardware
The procedure to Import Computer Parts from China requires higher requirements on both the buyer and the manufacturer.So the following points will help you know how to select reliable components and OEM production and private labels.
Product Customization: Importers have two options: buy an OEM product or import an ODM product. Developing OEM electronic computer hardware is not for every company because it requires technical expertise and large funding. The manufacturer must provide all the relevant technical specifications, files including the following:
- CAD files
- PCB designed files
- Source code
- Print file
What do you need to know Before Selecting an Electronic Computer Hardware Manufacturer in China?
Electronic, computer hardware manufacturer regardless of the product are not all equals. The industry is crowded with minor traders to large-scale manufacturing. When you select the electronic computer hardware, you must consider the following:
Regulatory compliance: Compliance with applicable safety standards is mandatory. Most Chinese manufacturers cannot ensure compliance; therefore importer must verify previous compliance, e.g. (test reports and technical document) before selecting.
Production capabilities: Some suppliers put together, assemble PCB’s and another component, purchased directly from subcontractors, while other may refine, and cut fabric, TPU, silicon and other material used in their products. So, working with the latter type of manufacturer makes it easier to develop new product and to resolve design or any functional flaws.
QMS (Quality Management System): A QMS e.g. (ISO 9001:2008) is applied to track quality and prevent quality issues through the production process. Most manufacturers have at least one or two testing stations, but few comply with QMS, such as ISO. Spending more time on QMS results in higher prices but a reduced defect rate often makes it a wise investment.
Price: While importing, you need to ensure compliance with electrical safety standard and substance regulation comes at a cost. There are primarily four types of regulations to consider:
- Electrical safety standard and directives
- EMC standards
- Substance regulation
- Labeling requirements
What Is the Minimum Order Quantity?
MOQ requirement specifies the lowest quantity of many products that a supplier is willing to sell. And if the importer cannot reach the MOQ requirement, then the supplier will not enter the production. The MOQ depends on the products you are importing and its cost, mode of transportation as well as its production capacity. The MOQ for import of computer parts from China depends on the type of hardware you are importing. The MOQ is different for import of each part of importing of the printer is 25 pcs, motherboard, memory card ram is 100 pcs, for CPU is to 100 pcs, etc.
Import Duties and Taxes:
HSN Code: – In India HSN code for computer hardware is 84713010
- The basic duty which is a typical tax that applied to all goods, but on the import of computer hardware is nil.
- CVD additional duty: It is levied on imported goods in lieu of excise duty levied on goods manufactured in India. And it levied at the rate of 12.5% on import of computer hardware.
- Central Excise Education Cess: A tax which is designed to fund education healthcare initiatives. It is nil.
- Custom Education Cess: In India, it is levied at the rate of 3% on import of computer hardware.
- Special CVD: It is applicable on all imported items in India and levied at the rate of 4% on import of computer hardware.
- GST: In India, IGST is applied to the imported goods. The amount of GST applied is depends on HSN code and GST on HSN code 84713010 is 18%.
Now, hire a professional customs broker agent who will take care of all the documents and responsibilities of calculating the payment of taxes, duties, excise, handling charges, transportation cost, and communication with other authorities.
Why India Import?
Cost efficient labor: China has the world’s lowest-paid labor and that’s what makes the difference is the efficiency of labor. For the past four years, Chinese labor wages has been consistently increasing and which is equally matched by increased in productivity.
Commendable supply chain: Supply chain means the transformation of natural resources, raw materials, and components into a finished product. That is delivered to end customer. And China’s supply chain is commendable, sophisticated, and flexible.
Competitive pricing: China can afford to price competitively because it does not take on certain costs, such as R&D or innovation.
Productivity and dumping: China follows a strategy which is called dumpling which means the mass production at an aggregate cost. And dumping is done to capture the market and the competition.
Benefits to Import Computer Parts from China:
Reasonably priced: You can buy bulk goods from China at a cheaper price and with lower taxes.
No special requirement: China requires any special licenses or permits to purchase goods as long as you follow the international trade regulations.
Flexibility: Import from China gives flexibility to the importers through direct control over their business distribution model.
Great potential: China’s manufacturing sector has experienced prolonged and dramatic boomed. So, directly importing from China is an effective business decision and the potential for profit can be very significant.
Major Chinese Supplier
- Shenzhen Four Plus One Industry Co. Ltd.
Location: Guangdong, China
Product: Bluetooth speakers, lazy bag lounges, mobile phone holder, etc.
- Guangzhou Gsan Science and Technology Co. Ltd.
Location: Guangdong, China
Product: cash drawers, POS system, POS terminals, thermal printers, etc.
- Shenzhen Saintway Technology Co. Ltd.
Location: Guangdong, China
Product: Car DVRs, GPS Vehicle Tracking System, Mobile Data Terminals, Industrial touch
- Shenzhen Vipstech Co. Ltd.
Location: Guangdong, China
Product: Real-time set-top boxes, HD set-top boxes, Android-based T.V dongles, etc.
- Guangzhou Trends Electronic Co. Ltd
Location: Guangdong, China
Product: wired headphones, gaming keyboards, gaming mike, 2-0-each computer speakers, etc.
Letter of credit: It is the most well-known method of payment in International trade. Under this, importer’s bank guarantees to the suppliers that the bank will pay mentioned the amount in the agreement, once the supplier meets the terms and conditions of the letter of credit.
Advanced payment: In this method, an importer pays the advance payment for the items to be imported before the shipment of goods. But this method involves a lot of risk factors for the importers.
Consignment purchase: Most beneficial method of payment where importer makes the payment only after the goods are sold.
Down payment: In this method, the importer pays the part of the total amount of the imported items in advance.
Open account: Into the open account, the importer takes the delivery of goods and ensures the supplier to make the payment at some specific date or as soon as possible. This type of method is generally possible, where the importer and exporter has a strong credit history and is well known to the seller.
Guidelines to import other items: