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As you know, every crisis represents opportunities. The pandemic has changed the rules of the game and it is time to encourage you to move forward in the import business. In this article we will give you recommendations on how to import from China to Argentina 2020 and we assure you that it is not impossible or very expensive, if you know how to do it and with the right advice.
Are you looking for recommendations to get started in the world of importing? Don’t you know key aspects of the process?
Although importing from China to Argentina has many benefits, there are few who have managed to get rid of the insecurity and ignorance that prevented them from taking the next step.
The truth is that bringing products from China does not have to become a problem if things are done in the right way. You have probably had some doubts such as: what are the steps to follow, what are the requirements, or what are the best products to import, and that is why we have decided to share with you the best recommendations to do it.
1. Organize the requirements and procedures for importing to Argentina.
As in any process, in order to import you must comply with a series of requirements. The most important thing is that you try to be as organized as possible and have all the documents, so that the process runs smoothly.
The good news is that nowadays the requirements are less than in previous years, so you will be able to complete the process faster and on-line. In general, the most important steps are
- To be registered as an importer/exporter before the Federal Administration of Public Revenues (AFIP), for them you must be a person or legal entity.
- To be registered in Iva, Ganancias and IIBB.
For more information, go to the following website www.afip.gob.ar.
2. Anticipate the costs of importing from China
After being registered as an importer or exporter, it is time to study the different tariffs requested by customs. You should know that customs duties and taxes will depend on the type of product you decide to import, ranging from 0% to 35%, since they have been classified in groups. Likewise, it will be necessary to cancel the value of national taxes, such as:
- General VAT of 21% or 10.5% in case of importing capital goods, IT and telecommunications (Art. 1 of Law 23.3449 inc. and Decree 2407/86 Art. 2).
- Additional VAT of 20% or 10% (AFIP General Resolution 3379/2012).
- Income tax of 6% (AFIP General Resolution 3379/2012).
- Gross income, if applicable, of 3% (General Resolution AFIP 3373/2012).
- Customs Officialization Fee of 10.00 USD that applies to all cases.
- Customs Digitalization Fee of USD 28.00 applicable to all cases.
- SENASA Wood Tax of 18.00 USD + VAT that only applies if the packaging is made of this material.
3. Make a market study
Often beginning importers fall in love with a commodity because of its price and logistical feasibility, forgetting the impact it can have on their customers and potential rivals. A good market study consists of taking into account three fundamental sectors: customers, suppliers and competitors.
For this reason, you must be certain that the product will really appeal to the target population. It is important that you ask yourself the question, will this product really catch on among Argentines? Do not close yourself to innovate, you just need to give the population time to try the product to see if they get used to it and accept it.
You may think that finding a supplier abroad may be a problem. However, it is very likely that you will receive offers from distributors interested in entering the Argentine market. To choose the ideal supplier, you should ask yourself the following questions;
Does it generate confidence?
How soon do you promise to deliver the product?
Do you guarantee the safety of the goods?
Do you have a good package deal?
Can you communicate in a language you both understand?
On the other hand, avoid entering a monopolistic market, unless you are confident that you can take on that big rival. The recommendation is to opt for a market where you have the same opportunity as your competitors to sell the product.
4. Have more than one product in mind
This point is closely related to the previous one, the recommendation is not to fix your vision on a single product. It is not about exaggerating either, the ideal is to have 2 to 3 star products in mind.
What happens? When you choose more than one item, it is more feasible to find (after having done the market research), which is really the star product that fits your expectations.
If you find yourself in the dilemma of which merchandise you want to import from China, it is best to focus your attention on the computer markets, technological products in general, articles and accessories for cell phones, construction materials, inputs for the different industries in our country, products that can be incorporated into a production process, etc. These products, in general, are the ones with the highest demand and profitability in the country.
5. Choosing logistically good products to import
We all agree that each product has a specific size, and this is an aspect that you cannot overlook if you are going to move it over such a long distance as it is from China to Argentina.
Remember that logistic transportation costs are quoted in a comparison between the weight and volume of a merchandise, the higher will be its transportation cost. Of course, you will always be able to recover this cost after it reaches the final consumer.
In case you decide to commercialize large products such as machinery, automobiles or materials, you should consider from the beginning that your capital can cover not only the cost, but also the logistics related to the product.
Logistics not only include size, but also delivery times, given the urgency with which you want to start selling the merchandise. The type of transportation you choose will be a determining factor in your final cost and the speed of product acquisition. There is a tendency that regardless of its volume, sea transport is more economical than air transport to the detriment of time.
6. Make a good product costing
After doing the market research and determining which product you are going to sell, you must compute in a detailed and organized way the value of the merchandise, the cost of transportation and the customs duties imposed by customs.
The final result of this calculation will serve you as an analysis to have a better view of whether you will be able to recover your investment and make a juicy profit. This will also avoid, to a certain extent, believing that because a product is cheap in China, it can be viable in Argentina.
It should be kept in mind at all times that the import process is linked to a series of costs (which must be known), so that when the product arrives it can have the expected impact and benefits.
7. Consider the customs broker as your best ally.
To expedite this and the previous logistics processes, it is advisable to have a customs broker. In general, this professional is the one who represents you before the fiscal institution of your country and helps you to estimate costs and to generate the best possible logistic option.
If you are looking for advice, tell us all your doubts and we will be willing to clarify them.