Searching for Chinese products

Have you thought about how to import from China to Portugal?

One of the most important steps in this process is researching Chinese products. It is essential to find quality, cost-effective products that meet the needs of the Portuguese market.

So take the time to study the trends, research reliable suppliers and analyze the demand from your target audience. With well-done research, you’ll be better prepared to import successfully from China to Portugal.

Please note that there are import rules that apply in the European Union or in a particular Member State.

Imports of some sensitive goods or imports of certain goods from specific countries may be prohibited or restricted. You may need permits, a license or to submit an officially approved import notification.

Check the TARIC database to see if you need an import license for your product.

The main types of products subject to import restrictions are: agricultural products, medicines, chemical products, steel products, cultural goods, textile products and clothing, weapons, counterfeit or pirated goods, indecent articles/publications/video recordings, endangered species, waste, some live animals and products containing animal substances, plants and products containing plant substances.

For these products, check which rules apply.

Finding cheap, quality products

If you’re interested in starting to import products from China to sell in Portugal, one of the most important parts of the process is finding the products.

What is the best website?

A good way to discover profitable products is to search Chinese e-commerce platforms to see which items are on the rise and have sales potential:

It’s also essential to be aware of market trends and consumer needs in Portugal. With a little research and dedication, you can find products imported from China that will be a hit on the Portuguese market in 2024.

Checking demand in the Portuguese market for imports from China

You need to see if there is already demand in the Portuguese market, and check the trends in product imports. Here we understand that the company is already aware of its market and knows where to look for information on its sector.

We know that the Sinoimex platform is highly sought after for an overview, to help understand the market.

For example, in “Measurement, detection and analysis automatic control instruments and appliances” from 2021 to 2022 there was a decrease in imports in all the main importing countries except China. This is an indicator that suppliers from China are succeeding in entering this market.

You can also get an overview of China’s exports to Portugal from the statistics published by INE.

An additional source of data and trends can be found in the Observatory of Economic Complexity (OEC)where we have provided a link to Portugal’s connections with China. The image below gives an idea of China’s imports into Portugal.

The specific analyses must take into account the industry in which it operates.

Assess the competition for these products in Portugal

Once you’ve checked demand, it’s very important to see if the competition offers the same or similar products. Depending on the industry you are in, you should always consult them.

In the case of products sold online, it’s easy to identify the competition. But in the case of on-demand products, there are always specific reports such as Euromonitor. There are various companies that reveal market trends (consumer trends), market reports, analysis platforms. In these companies, of which there are many, always pay attention to how the data is extracted.

It can request quotes from competitors, either through internal resources or through external contracting services.

It should be stressed that the process of competitive product analysis is a management process: listing competitors, analyzing the features and prices of competitors “products, analyzing product design, analyzing competitors” sales and marketing tactics. This leads to analysis models such as SWOT analysis, benchmarking, among others.

Choosing suppliers in China

Before proceeding with the choice of supplier, determine your starting point:

Product specifications: be meticulous about product details, materials, quality standards and certifications.
Order quantities: consider the minimum order quantities (MOQs) and how they align with your needs.
Delivery requirements: specify delivery times, shipping methods and specific packaging needs.

Later, you can see if there has been a big deviation. If, during the negotiation, the objectives became too unrealistic.

Search for reliable suppliers

Have you ever wondered what makes the Chinese supply chain a global power? In the intricate web of international trade, the Chinese supply chain is a key player. Understanding its complexities and the critical importance of effective negotiation could be the game-changer for companies looking to thrive in this competitive landscape.

#1 The choice between manufacturer and trading company has an impact on the range of products, prices and customization in Chinese markets

A trading company usually offers a wider range of products, as it sources from several manufacturers. This can be an advantage for companies looking for variety. However, a manufacturer can offer lower prices due to the absence of intermediaries and offer more room for customization.

The strategic location of a factory can significantly influence transportation costs and delivery times.

#2 Check the manufacturer’s dimension

A large workforce often means a factory’s ability to handle mass orders and maintain consistent quality under high production demands. On the other hand, a smaller workforce can indicate a more specialized operation, potentially offering more customized solutions, but with limited capacity.

#3 Establish initial communication with several quality assurance suppliers

Ideally, you should draw up a list of at least 10 suppliers. This will allow you to carefully weigh up the pros and cons of the different suppliers and identify any that are offering conditions that seem way out of the norm (for example, a very low unit cost).

China’s own supplier portals offer a wealth of information and certifications, but you can go further by investigating the suppliers’ websites to see if the certifications are relevant. It really is important to be diligent.

In Chinese trade, effective negotiation can lead to better prices, quality and delivery conditions.

#4 Check product quality and certification

Regions like Guangdong are known for their skilled labor and advanced manufacturing technologies, leading to higher quality products. Conversely, other regions may offer lower costs, but at the expense of quality. It’s a balance that must be carefully considered in the context of your product requirements.

#5 Check the meaning of the certifications the company offers

Suppliers in China have in-depth knowledge of international compliance and quality standards, which are crucial for retail products.

They are likely to have established quality control processes and be familiar with the certifications required in various markets, which makes them reliable partners for companies wishing to have a global presence in retail.

Many products require CE marking before they can be sold in the EU. The CE marking indicates that a product has been assessed by the manufacturer and found to meet EU safety, health and environmental protection requirements. It is mandatory for products manufactured anywhere in the world and then marketed in the EU.

Always check the information provided by Chinese companies on the suitability of their products for EU compliance standards against the requirements demanded by the Portuguese regulator. For example, if you want to import medical products, you should consult Infarmed to ensure that the goods meet EU and national compliance standards.

#6 Quality assessment through samples in Chinese trade

Requesting samples before placing a full order allows a direct assessment of the quality of the material and compliance with specifications. For example, in the textile industry, samples are essential for assessing fabric quality, printing accuracy and overall design. It’s a small investment that can prevent costly mistakes in the future.

It’s important to know a supplier’s sample policy. Some suppliers may offer free samples, while others charge a fee, especially for personalized products. This fee is often deductible from the final order. The key is to clarify these terms in advance to avoid misunderstandings and ensure that the sample correctly represents the final product.

#7 How much does an outsourcing inspection cost?

Many buyers have overlooked quality issues, an obvious way to control the problem is to find an inspection company in China to check the quality before shipping.

At the same time, they fear shocking the manufacturers by giving the impression of distrust. This shouldn’t be the case if you make it clear from the outset that this is normal procedure for your company.

The cost of an inspection service in China can vary depending on a number of factors, including the type of inspection, the complexity of the product and the location of the factory.

However, as a general rule, you can expect to pay up to 300 USD per man-day for product inspection services in China. There are cheap inspection services (around 100 USD per man-day), but be aware that they are less reliable. It will depend on the value of the order and the simplicity of the inspections.

Below is a breakdown of some figures from an inspection company of the typical costs of the different types of inspection:

Pre-production inspection (PPI): 198 USD per man-day
Inspection during production (DPI): 228 USD per man-day
Final inspection (FI): 200 – 248 USD per man-day
Factory audits: the cost of factory audits is also similar, ranging from 188 to 268 USD per man-day.

In addition to the man-day rates, there may be additional fees for travel, accommodation and meals. You should also take into account the cost of any laboratory tests that may be required.

Negotiating prices and payment terms

Effective communication is the cornerstone of any successful negotiation.

In China, this means being clear, respectful and patient.

The use of simple but precise language is key to avoiding misunderstandings. For example, clearly articulating product specifications and deadlines helps to avoid discrepancies. In addition, adopting a flexible approach and showing a willingness to understand your supplier’s limitations can lead to more productive negotiations.

One of the main challenges is to recognize the importance of building relationships. Another common mistake is to ignore cultural “nuances”, such as the importance of face-to-face business interactions. In addition, a lack of diligence or underestimating the value of a thorough quality inspection process can lead to problems after the deal.

Understanding and negotiating favorable payment terms.

Negotiating favorable payment terms is a delicate balance between understanding your supplier’s restrictions and protecting your cash flow. In China, it’s common to start with a 30% deposit and the rest after shipment.

However, conditions can vary greatly and factors such as the size of the order, the history of the relationship and the type of product play a significant role.

Transportation of the goods with the agreement of INCOTERM

We recommend that you always check the shipment and we suggest using the term FOB (Free On Board) along with the location. Example: FOB Shanghai. In this way, the price you receive will include the value of the goods and all related costs until they are placed on board the ship (in the case of sea transport). For imports by air, we recommend using the term FCA (Franco Carrier).

Tax and customs charges

At this stage, you should contact an OFFICIAL OFFICER with the pro forma invoice for the order, ask for an assessment of the tax and customs charges, as well as the clearance services and, once again, check that there are no import restrictions.

As part of the partnerships between Green Ibérica and specialized service providers, we have a DISPATCHER service.

As a complement, check the Finance portal – Customs Services.

Logistics and transportation

Choosing the right means of transport

The rule is to choose sea transport, as the transportation costs are much lower. The transit time is around 40 days between a port in China and the port of Lisbon or Leixões.

Although most goods are shipped by sea, air cargo is undoubtedly the most expensive option among all transportation methods. Air transport is fast and safe, especially for goods weighing less than 500 kg. However, it is important to note that air freight prices are relatively high, especially for goods weighing over 500 kilograms. Therefore, when opting for air freight, consider the cost and urgency of your shipment.

Hiring a logistics company

Here we recommend that you contact us. We represent EVERGREEN LINE, one of the world’s leading shipping companies, with a fleet that guarantees 6 weekly services from China to Portugal.

We also have complementary services that speed up the movement of goods and make us a “one stop shop”.

By choosing EVERGREEN LINE, you are making a commitment to a more sustainable planet. The company is a world leader in sustainable maritime transportation.

Documentation for importing from China

The following documents will be required.

The invoice issued by the supplier, which details important information about the company, such as the company name and registration details. It also contains a description of the products or goods, the price and the INCOTERM of the sale, such as whether it is FOB (port of origin) or CFR (port of arrival).
Packing List: The Chinese supplier needs to deliver a clear and detailed document containing all the information about what is being shipped, including the identification and quantity of the packages, the individual and total weight, as well as the measurements of each package, etc.
The certificate of origin is an important document to prove the origin of the goods being traded. It enables both the exporter and the importer to obtain tax exemptions or reductions thanks to international agreements. In addition, depending on the type of product involved, other documents and certificates may be required, such as for food, fish, cosmetics, clothing, footwear, personal effects or luggage.
The Bill of Lading (BL) is the document issued by the transportation company (Evergreen Line, we hope) at the place of origin and delivered to the supplier. Normally, the supplier will send this document to the buyer after the debt has been settled (or before, if credit has been granted). It is on presentation of the BL that the shipping company can deliver the goods.

Additional services

Free practice (import clearance) at the European Union port of transhipment (Rotterdam);
Free practice (import clearance) in Portuguese ports for goods destined for Portugal or other EU member states;
Insurance for the transportation of goods;
Storage;
Consolidation and deconsolidation of containers;
Transportation from the port in Portugal to the specified location.
Maritime groupage service.

Monitoring the delivery process

Evergreen has an electronic platform that allows you to monitor the entire shipping process:

https://www.shipmentlink.com

It includes real-time tracking of where the goods are.

On arrival at the customs office, the official customs agent will contact you for processing and payment of taxes and duties.

Once the goods have been released, the transportation service is carried out to the final destination.

You should inspect the delivered goods to check that everything is as you ordered.

How to Import from China to Portugal

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