hi,

I would like ask if we have to apply export rights when we do export to international markets.

We are a manufactory of hotel slippers and we have been manufacturing hotel slippers for domestic trading companies for 10 years, my boss wants to expand the business, and I am meeting lots of foreign clients, but he does not want to apply export rights since it takes some time and resources, you have to go to lots of government departments and lots of paperwork. He just wants to export the products from a trading company.

what I am thinking is that, when our business grows up, do we still export thru trading company?

Thanks

Replying to [68217]: Look at it this way the trading company is a middle man. They have to make money to stay in business. However, should your boss apply for export rights he eliminates the middle man allowing your company to charge a little more than what the trading company pays for them when they buy from your company. In this way your pricing can be more flexible and competitive allowing for greater profits.

Ranger

In China, you really need to get export rights to export.

Formally you have to apply the rights, but for a small to medium size manufacturer your success chance is low.

How other people are doing are to export through forwarders. They have generally linked closely to formal import/export companies and they will make use of their un-used quota to make money.

This is how many small manufacturers are exporting. So you can just contact the leading forwarders in your town/city and they will help you and explain to you in details.

Replying to [68217]:

Thanks, this is one way I am thinking, but the price is just what I discussed with global clients, just do the export process thru trading company.

Replying to [68217]:

Thank u for yr suggestion. by this way, some time, the things with the forwarders are complicated, worried about my client information, they may use the information and contact my client, not sure for this but sometime happens,

Replying to [68217]:
Or you can work with a trade company.

Replying to [68217]:

I think it's necessary for you to apply for an Export right in case you're trying to expand your business at overseas market.

Do not worry, it's easy and cheap enough nowadays in China.

Replying to [68217]:

Hi Jacco - I just set up a WFOE in China through an agent - I am not a manufacturer and I have also applied for an import/export license - It seems my agent will be able to get such a license for me without much problem

My question is - are import/export licenses for companies such as mine different from those that manufacturing firms possess? I intend to get my clothing produced by factories in China - after which I will export them to other Asian countries - I hope the import/export licenses are different as it sounds difficult for manufacturing companies to obtain an export/import license?

Also - Every time my company exports a batch of clothing - do I only need to show customs in China my export license? Or do I have to get a new one every single time? I'm a bit confused - thanks for your or anyone else's help!!

Replying to [68217]:

Hi Fugly,

"Also - Every time my company exports a batch of clothing - do I only need to show customs in China my export license? Or do I have to get a new one every single time? I'm a bit confused - thanks for your or anyone else's help!!"

not like that you show customs the license, but when you have the license, you will have to do some other procedures, these will be related to the departments of tax, foreign exchange, customs, i think you can go to consult some professional agents, not so difficult just need time and resources to do it, its hard for those lazy bosses like mine I guess, thanks