If you are running a company in Kenya that depends on imported goods, you need to know these 10 Steps To Successfully Import Goods From China To Kenya. Whether you are planning to diversify your business or leverage cheaper-made products, importing goods from China to Kenya can be an important ingredient in your small business
However, as a newcomer, you will discover the procedure of importing goods from China is not easy. But before you rush to import your first batch of products there are a few things you should keep in mind.
Import Goods From China To Kenya
Direct importation from China is a tactic that many businesses have adopted globally when acquiring items from the global market. This approach has shown to be quite effective. China is a sizable market that generates a variety of goods, including building materials, electronics, furnishings for the home, and other accessories.
Here are some simple business tips to guide you through the process of identifying marketable products and importing them to your small business store here in East Africa.
Step 1: Identify What Goods To Import
While the choice of items is massive, you need to know what to import before you begin the entire process. As with any other investment project you may be trying, make sure you have a clear understanding of what you are going to be doing before going into it.
Find some good products which can attract demand locally. If you choose the wrong items, you will lose your money and time as the shipping cost from china to Kenya also depends on the items you are shipping. Begin by gathering lots of information about the things you want to import.
You should then obtain their description, composition, and sample, if necessary. The information you gather will be useful in determining your tariffs and any other costs associated with the importation process. Ideally, the best products to import from China to Kenya should be those you like, are unique, and you can ship in large quantities.
Step 2: Find The Best Suppliers
You need to work with the best supplier because you will be using them to place your orders. It is also the same supplier that will ship or export your items, and also identify the terms of your shipping. Sites such as alibaba.com, analema, aliexpress.com e.t.c have an excellent database of Chinese Manufacturers. Here you will find many suppliers supplying different product categories.
It is however advisable to double check on the credentials of your chosen supplier just to make sure you are getting the right deal. To avoid scams or cases where poor quality products are supplied take the following precautions:
- Get contacts of one of the Kenyans living in China. These might be helpful in locating the right suppliers and spot checking quality of your products.
- Before you order in bulk, request the supplier to send you a sample of the product. Normally, samples are given out free of charge but you may have to pay for freight charges (about $50 or Ksh4,500).
Step 3: Get a Clearing Agent
Any import into Kenya must first use a clearing agency, whose services are required. The agent’s job is to process all necessary import paperwork through Kenyan customs. They will clear the items on your behalf after they have processed the documentation online.
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Step 4: Have All The Required Documentation
The easiest method to learn how to import products from China to Kenya is to be familiar with the necessary paperwork.You must produce these and many other documents on time before your shipment arrives in Kenya. Among the documents you’ll need are:
- Certificate of Conformity – It ensures the conformity inspection of your commodities.
- Import Declaration Form – Provided by the KRA, the form contains information regarding the value, quantity, quality, and classification of your cargo.
- Commercial Invoice – It contains information about freight charges, costs of items, and insurance costs, among others.
- Exemption Letter – It is a latter you receive as a result of importing goods exempt from taxation
Step 5: Make Your Order
Place your order if you are satisfied with the product quality and it complies with Kenya’s import laws. You can place an order by visiting the supplier in person or using the available choices. To get the greatest price, negotiate with the product’s producer before placing your order.
If you’re looking for inexpensive shipping from China to Kenya, sea freight will be your best option, but it will require you to import huge, bulky things in full or half containers. For airmail, firms to think about are DHL, EMS, and others.
Step 6: Determine How Much You’re Going to Spend
Costs of transportation and importation from China to Kenya can be unclear. Clearance, shipping, inspection, warehousing, VAT, taxes, and tariffs are a few of the costs connected with the importing process. Taxes and tariffs are likely the two most important costs to figure out immediately. The Kenyan government imposes levies on all commodities imported into the nation because you are doing business there.
Since you are importing to re-sell, it is important that before you place the order you get your math right. Apart from paying the supplier for the goods, you will be required to pay for freight, clearing, duty fee, inspection fee among other charges.
Simply multiply the manufacturer’s pricing by 1.6 to get an idea of how much the entire process will cost you. The total amount you’ll spend will be the answer, and using this sum, you can now estimate your profit even before importing the goods.
For Example;
If you are importing a bunch of watches that cost Ksh50,000 in total all you need to do is to multiply 50,000×1.6=Ksh80,000. So Ksh80,000 is roughly the amount you need to cater for all expenses along the way.
Tariffs on imports are not comparable. Depending on what you’re bringing in. It may begin at 0% and increase to 100%. The typical tariff ranges from 20% to 30%. Additionally, all imports must pay a 16% VAT under Kenyan legislation. After accounting for the Cost Insurance and Freight (CIF) value, customs duty, and other import taxes, that figure is determined.
You will have to pay an import declaration fee (IDF), which is equivalent to 2.25% of the CIF value. The amount is subject to a set minimum of KES 5,000. Understand that customs duty in Kenya is payable after customs assess the value of the items and determines the applicable rate.
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Step 7: Pay for all the logistics
When importing into Kenya, there are a lot of expenses you will have to pay. You must first pay for the charges associated with obtaining the things. Second, you must pay for the labeling and packaging of your products in accordance with Kenyan standards. Thirdly, you’ll have to pay for China’s export clearance fees.
You will be responsible for paying import clearance fees and port-to-port freight when your shipment arrives in Kenya. Paying freight forwarder fees is necessary if you choose the least expensive shipping option from China to Kenya. You will be required to pay inland transportation costs because your goods must be delivered to your business location.
Step 8: Know the shipping costs from China to Kenya
In general, it is impossible to estimate the cost of transporting goods from China to Kenya. Finding the appropriate supplier, preferably through an agent of Alibaba in Kenya, is the most important step, though. The ideal vendor will provide an estimate that includes freight expenses for both Chinese and Kenyan ports. Alibaba should also list the agent’s business.
They will also include port charges and delivery to your business premises. That will be easier for you to put an amount to the cost of shipping from China. However, they will not include taxes and import duty in Kenya.
Step 9: Identify the Port of Loading
The process of importing goods from China to Kenya is so lengthy that you may forget other details as a first-time importer. Unlike in Kenya where we only have one main port city, China has many outlets.
There is Guangzhou, Tianjin, Qingdao, Shenzhen, Shanghai, Ningbo and Dalian among others. In each port city you will find courier companies which can deliver to Kenya and help you clear with the customs offices.
Step 10: Collect Your Goods At The Port
If you pay for your goods to be delivered by air, it goes without saying, you will have to collect them from your nearest international airport. On the other hand if you chose delivery by sea, then you have to collect your products from the port of Mombasa.
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DON’TS When Importing From China To Kenya
- Don’t listen to supplier who try to tell you that they can’t ship samples; they might just be trying to scam you
- Don’t pay with your ATM card. Use PayPal at least for the first 6 months until you fully trust your supplier.
- Don’t buy counterfeit products.
- Don’t buy a lot of items on your first order. You can start off buying 1-5 units at a time until you build up the money to re-invest into your inventory.
- Don’t buy Prohibited Items such as gambling machines, political literature, pornography material, precious minerals and stones, counterfeit securities and currency, and animal tasks, skin, husks, e.t.c
- Don’t buy Restricted items such as alcohol, tobacco, firearms, computers, perfumes, appliances, fabrics, and electronics. You need special authorisations and pay specific taxes and duties to import restricted items.
Do you have any experience importing products into the country? Would you like to start importing soon? Share your thoughts via the comment box as we’d also like to hear from you.