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    1. Jonescam is offline

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      Importing unfished electronics from China to USA for completion pro's and con's

      We are currently investigating importing high volumes of unfinished electronics from China to the US. The circuit boards will be housed and packaged here in NYS and then distributed. Does anyone have any experience in doing so regarding a inexpensive shipper, tax advantages, tariffs, etc in doing so. what if the finished goods are assembled in China and shipped to the USA for packaging, are there any advantages?
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    2. Paddy is offline

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      I think this is a good idea. In this way, you can not only save the cost but also can raise your products' price, coz they were made in America.
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    3. bbtiger is offline

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      It seems we are in the same line of business. I am working with electronics but haven't shipped to the States yet. Even then I hope my views can help you in some way.

      1. Assemble the product in China

      I am sure the labor cost is lower in China than it's in the States. If you can have a good factory to assemble the product, that will be better. If not, you will surely be in trouble if the goods are not assembled and tested well, and will fail at your end.

      Another thing, though I am Chinese, I still need to say, if the product you are selling is high tech, better to assemble at your end. I have suppliers from the States and U.K. they don't like to have their end product built in China, even though they always complain with me about the high cost of producing in the States and U.K.. They do that also because they are afraid their products will get copied if assembled in China. Well, my product is also copied by others.

      2. Import cost issue

      I don't know the situation in the States, however I know there is a rule for trading internationally. I think the import tariff is lower if you import parts, the unfinished product, instead of the fully assembled product. I just take my product as an example. I import cones from abroad, the import rate is 10% + 17% VAT. However, if I import the whole product, I need to pay 10-50% + 17% VAT as tariff. This will increase my cost for a product. I know the situation is the same in Brazil, as my customer there is always importing unfinished parts to his place and he assembles himself.

      So I think it will be the best if you can have the H.S. code of your product and then check the tariff rate on the customs website. As poor as the Chinese customs are, I can have a tariff checked there and then you can compare the tariff for the finished product vs the unfinished product tariff.

      The main risk for this kind of strategy is that parts may get damaged during transportation, the overall volume of the shipments is likely to increase, or the parts won't fit together once you need to assemble them.

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