How to save money when I plan to import goods abroad?
When I import goods abroad,is there any way which can help me to reduce costs reasonably?
Yes,there are many methods. Saving exchange fees and reducing tariffs are two usefull methods.These two methods are also the most high-effective and feasible methods.
As we know,US dollar is the most popular transaction currency in international trade.But recently,when you want to exchange US dollar,you find the dollar currency rate has been rising so high.It means I have to pay more amount to exchange US dollars.
The US economy has been recovering strongly in recent years. Because of this, the United States government withdrew QE(Quantitative Easing).Besides,the FED(Federal Reserve) has raised interest rates for three times since the beginning of 2018,respectively in March, June and September.At the same time, other major economies in the world are taking loose monetary policy. After the US dollar raised interest rates, multinational currencies depreciate against the US dollar,such as EUR,GBP,JPY,RMB,Canadian dollar,Australian dollar,Singapore dolla,Hong Kong Dollar and so on.In particular, the currencies of the Argentine peso, the Russian ruble, the Brazilian real, the Turkish lira, and the Philippine peso have depreciated sharply.
What’s more, it is expected that the FED will raise interest rate in near future. So US dollar has been rising all the way. Although there were some short callbacks, it soon began to rise again. Rising is the general trend.It is unlikely that the US dollar will fall sharply in the short term.
Faced with this fact, how to deal with the adverse effects of the appreciation of the dollar?
Our company, Zhengzhou Hento Machinery Company,advise you pay by Chinese Yuan(RMB). As it is said above that the dollar has appreciated, but Chinese government hasn’t raised the interest rates, even cut interest rates several times in disguise this year. As you know, Chinese Yuan is also an international currency.It is one of the five currencies that have been included in the IMF’s Special Drawing Rights (SDR) currency basket.And our company also open some bank accounts in other Currencies,including EUR,GBP,JPY,Canadian dollar,Australian dollar,Singapore dolla,Hong Kong Dollar.You can choose one proper bank account to pay to us.
After I got the foreign exchange at a lower cost and paid to the buyer,I wait for the goods.How to save customs when I receive the goods?
Let’s have a look at the tariff calculation formula:
Import duty tax = Goods price * Import tariff rate
When the tariff rate is determinated, the lower the goods amount is, the fewer customs you need to pay. Is it right?Yes,of course it is. Now you may have a doubt, how do I show a lower amount to the customs authority?The customs authority usually judge the goods amount by the commercial invoice.So if your commercial invoice have a lower amount,you can save a lot of customs.And to the exporter,the amount in the commercial invoice hardly has any effect to themselves.You just need to try to ask your exporter to make a lower amount on the commercial invoice.In the past,many customers asked us to write a lower amount in the commercial invoice.
At present,the country most affected by tariff changes is United States,because Trump imposes a 25% tariff on Chinese exports to the United States.But this does not stop US customers importing goods from China.The American people are very smart, they thought of a solution quickly.The following is one screenshots,which show that one Amercian customers asked us to write lower amount on the commercial invoice to reduce the custom tax.
You just need to tell you demands to your sales representative.Your sales representative will help you to apply from the financial departmnet.After the financial department agreed,the related person,who make the documents, will make the commercial invoice for you.
Besides this above way,there are many other ways to help you to save customs when you import goods abroad,such as choosing a proper HS code,get some usefully certificates(for example:CO,FORM E,FORM A,ect.),choosing a professional forwarder and so on. These methods can be used in combination with the above method. You may be not familiar with these methods,but Hento company has a professional team to deal with these complicated affairs.For the details,please contact your sales representative,or send email to our service email box,firstname.lastname@example.org.