Any sourcing agents can be a shortcut to finding the ideal supplier. They can do all the necessary legwork that you are supposed to do and eliminate a lot of risk involved in working with a new factory.
Often companies while importing products from other economies may wonder if they should hire a Chinese buying agent. Of course, yes, after all, if someone is planning to outsource goods from China, it might be worthwhile to have a certain local presence that can always guide you to make effective purchase decisions.
In this article, we will try to explore a little more about a purchasing agent. We shall also overview some of the legal requirements while importing products from China.
Why should importers hire any China purchasing agent?
There are many reasons for hiring a resourceful and trustworthy agent. Your purchasing agent is going to interact with different Chinese companies in Mandarin or the local language to avoid any communication gaps.
They also have enough commercial knowledge and awareness of the market prices, which can be very useful for negotiating prices with your Chinese vendors.
Besides that, there are many other reasons for hiring a Chinese buying agent. So, let us explore all that in the coming paragraph.
1. Knowledge of industry trends
A buying agent is always well aware of the industry trends that can have a bearing on the price. They also know which type of products will be more suitable for your needs.
So, you can exploit all the knowledge and expertise that the agent has regarding the Chinese market.
2. Managing shipment issues
If you are living far away from China, then surely you cannot afford to fly now and then to resolve any shipment issues that may come up from time to time.
Here your local agent can play a very useful role and help you to address issues as they are well versed with the local rules and are also well connected with the right people.
3. Organization of the purchase process
There are several steps needed during the purchase from any other country. Your agent will be well versed with all that and can work on behalf of you in China and you can concentrate on your own business development activities instead of worrying about such trivial matters.
Negotiation is the most important part of sourcing products from China as that is going to decide how much profit you can earn. Here, your Chinese buying agent can play a very important role.
As they can communicate in the local language and are also aware of the local market, hence they can help you to get a better deal.
5. Vendor relationship management
To develop a long-term business relationship with your Chinese supplier, you can make use of the services of your trustworthy agent, who will act as your company representative in China.
Your agent can regularly communicate with your supplier and cultivate a good relationship, which is necessary for your business’s success.
6. A positive outlook for the company
An ethical agent will surely help to build a very positive reputation for your company. Due to the emphasis on various sustainable practices in the workplace, most consumers prefer these days to buy services and products from those organizations that follow all these practices.
Emphasis on sustainability should not only be a slogan of a company, but should be present in the vision and mission statements of the company.
What may go wrong with a sourcing agent?
These days many companies in Western countries are looking for a certain helping hand while importing from China. This is exactly when your Chinese buying agent will become relevant. He can be your business partner and also your right hand while doing any business in China.
However, anyone can pose himself as buying agent in China. Therefore, before hiring your agent, you must do all the necessary verification to ensure that you have a trustworthy agent on your side.
If you fail to make an informed decision while choosing your Chinese purchasing agent then possibly you might lose a lot more than all the commission or service fee that you must have paid to him.
Legal requirements for importing goods from China
When importing any products from China to your country, the first step that you must do is learn all the rules of your country as well as China that you need to abide by.
The following are a few of the legal requirements, which may also vary from country to country. You must also check which documents and legal requirements are needed in your country for importing from China.
1. Business registration
Before you decide to export or import to China, make sure that your business is registered and that all legal requirements have been fulfilled in your country.
Your company must be registered as any of the following to be eligible to import from China.
- Sole proprietorship company
- Partnership Company
- Limited liability partnership
- Private limited company
- One person company
To do that you may need to fill up several forms and draft legal documents as needed in your own country. You may need the help of legal experts as any error made by you can put you many complications and delays.
2. Tax registration
After you have registered your company to the respective authority in your state you may receive a certain ID which will be used by you later to pay the necessary taxes.
In some states, there may be a requirement for a security deposit too..
3. IEC code registration
All these processes are now also available online and you can obtain your IEC code registration to obtain your Digital Signature Certificates for the company. You may need to submit the following documents to obtain this.
- ID and address proof of all the partners/ directors of your company
- Bank account statement
- Banker certificate
To conclude, we can say that your Chinese buying agent can help you to coordinate the whole process of purchasing products that are needed in China on behalf of your company by interacting with suppliers and other departments.
They will identify a certain good supplier for you nearby place to him so that it is easy for him to do all the necessary follow-ups with the company promptly. They can also help to maintain the quality of your product that is manufactured in China.