I own a hat and hair accessories store in Miami, Florida. I would like to purchase products from China in bulk because of the unbeatable prices, but I'd like to know about the risks of importing from China before I step into that arena.

Here are some tips to minimize your risks for importing goods from China.

• Obtain and review product samples for quality. When placing the purchase order, include as many details as possible.

• After you find a supplier, plan a factory visit and inspection to meet the management team and check if the factory complies with regulations. If you are unable to travel, consider appointing a local agent to inspect the factory on your behalf.

• You should have an approximate estimate of the landing cost, i.e., "import to destination" cost, before placing your order with an import supplier in China. Landing cost is the sum of: cost of the goods up to loading on the transport, transport costs, import duties, and cost of service providers (inspections, agents, etc.)

• If you don't understand the Chinese language, you may need to hire a trusted translator. It can be very daunting to try to negotiate complex business issues when communication is so difficult. Language can be a strong barrier between you and the Chinese companies.

• Visiting import shows and international trade fairs is a good way to meet potential import suppliers in person.

• You should understand the relevant import compliance regulations before placing your order. Failure to fulfill customs compliance can be very costly. It may significantly delay customs clearance and force you to pay high and unexpected customs taxes. Consult a good customs house broker before placing any order.

• Many Chinese wholesalers will only accept Western Union and wire transfer payments. Since these are not secure payment options, purchase a small shipment of goods from your new supplier to minimize your risk of losing too much money.

Thanks for the tips. Can you also tell me how I can find information about legitimate suppliers and products I wish to import from China?

The easiest way to find information about how to import from China is to ask questions on this forum. You can use the forum to discuss the latest in demand products, importing, wholesale suppliers, safe trading, and more.

Besides understanding the market, you should learn about the manufacturers and suppliers of the product in China. There are web listing services that will enable you to register your username, post the products of your interest, and receive product supply information. You can also ask service providers and buyers about certain suppliers.

I own a small toy business located in Atlanta, Georgia. China makes many unique toys that I want to import to the US. I am in the process of creating a list of questions to ask potential suppliers located in China. Can anyone give me a few ideas?

You should discuss the price, shipping and payment terms with potential suppliers. You also need to know if the products or toys you receive are licensed and genuine. Do not order counterfeit or branded toys unless the supplier can prove they are an authorized reseller.

You should also ask suppliers how long they have been in business, which companies they manufacture for, and what trade shows they attend. Check and confirm all of the information given to you to the fullest extent. Here is a list of possible questions:

• Do you have a minimum order amount?
• Do you have any samples or a demonstration of the product?
• How much is charged for technical support?
• Does the supplier provide consultancy and, if so, at what rates?
• What happens if I decide to cancel this project?
• How do you handle returns and refunds on damaged or malfunctioning products?

I have purchased toys from China suppliers in the past. I find that a lot of the brand-name goods that come from China are either replicas or fakes so don't be too surprised if the quality is not the best.

Do not buy Chinese products already branded with a company’s label. These products are likely to be counterfeit. Instead, buy unlabeled products and brand your own products that you import from China with your own unique company design.

You should also be very familiar with international trade laws if you plan to import toys or goods from China. You must know what regulations have to be followed and what all the US allows for imported toys. Americans have experienced problems with imported toys from China, so you need to be extra careful. If possible, take a trip to China and seek out toy merchants with the safest and highest quality toys. If you cannot go to China, you may want to hire an agent that lives in China to find the toys and send you a report on the quality issue.

That's a good point. Any goods that do not meet US requirements can be stopped at the border. Don't take an agent's or supplier's word that the requirements are being met. Check the Customs and Border Patrol website (CBP.gov - home page) to see if your product is restricted or prohibited.

All items coming into the United States is subject to a Customs duty unless specifically exempted by law. Imported goods may not legally enter US commerce until the shipment has arrived within the port of entry and Customs has authorized delivery of the item. The appropriate documents should be filled out by either by the importer or by the importer's agent.

The US Customs and Border Protection and other government authorities such as USDA and FDA also regulate importation. You can visit the below links for more information on USDA and FDA importing and exporting regulations.

USDA Website: USDA - APHIS - Import and Exports

FDA Website: Import Program