GREAT 188 IDEA: Do Business in China

For some great ideas about doing business in China, I turned to Edie Tolchin, known as “The Sourcing Lady.” She's an author and columnist for Inventors Digest magazine. Although she's an expert in doing business in China, I was surprised to learn she's never been there.

Here are some highlights of our interview:

• What's the best way to find out what products or services might appeal to the Chinese consumer? One way is to try posting “goods for sale” on www.alibaba.com and see if there's any interest or demand specifically from China. Another way is to establish contacts with businesses in China to establish a demand. A third way is to plan a trip there, first as a tourist, to see what the Chinese people are buying over there.
• Do you recommend going on a trade mission to China? They can be good, but they're mostly “fluff.” Some tour companies will take you to the typical tourist areas and then arrange visits to factories and businesses that pay the agency to bring travelers there. So then you basically visit only the factories that the tour guides arrange to visit. The problem is this: you are often spending a few thousand dollars for a controlled itinerary without much flexibility to accomplish what you might want to (i.e., visiting with your own, previously established contacts).
• Is there a lot of red tape and paperwork involved in doing business in China? Yes, tons—there are import licenses and permits involved (importing into China), duties, and taxes, as well as customs issues. Documentation (shipping documents) must be “perfect” or shipments can get stuck for a long period of time, missing windows of opportunity.
• How do you find a company or broker to help you navigate the waters? You will need a freight forwarder. (Just to clarify: freight forwarders export and arrange shipments from one country into another. Customs brokers import shipments from a country that is exporting into the country that the customs broker is importing products to.)

Tolchin said to locate a reputable freight forwarder to assist you with arranging your shipments to China, contact the National Customs Brokers and Forwarders Association of America, Inc. at www.ncbfaa.org. You can contact Tolchin at [email protected]. Her web site is www.egtglobaltrading.com; office number: (845) 651-3107; mobile: (845) 321-2362.