GUIDE
Guide to Importing Furniture from China
If you or your business are considering or planning to import furniture from China, this guide is an essential read.
1. Why Import Furniture from China?
China remains the global manufacturing powerhouse, particularly strong in furniture production, even as other low-end manufacturing sectors have shifted to different countries. The country’s robust supply chains offer significant advantages for furniture production. For instance, producing a simple flat-packed TV cabinet with chrome-plated hairpin legs involves a complex supply chain including particle board/MDF manufacturing, paper/melamine/vinyl covering production, screw and fitting manufacturing, metal leg production, and chrome coating.
China excels in mass production at low costs. Later in this guide, we will provide examples of factory owners who shifted outdoor rattan furniture production to Vietnam, only to return to China due to productivity issues despite lower wage costs.
China excels in mass production at low costs. Later in this guide, we will provide examples of factory owners who shifted outdoor rattan furniture production to Vietnam, only to return to China due to productivity issues despite lower wage costs.
2. Key Considerations When Importing Furniture
A) Import Business Model
Aligning your business model with China’s strengths in mass production is crucial. Establishing mass production requires significant time and expertise, making it worthwhile for businesses needing a consistent supply of mass-produced goods.
Successful vs. Unsuccessful Business Models:
Model One – Not Suitable for China Furniture Import: A boutique business selling unique furniture pieces in minimal quantities should not import from China. The low volume and small market are not compatible with China’s mass production capabilities.
Model Two – Suitable for China Furniture Import: A business with high sales volumes, whether online or offline, that has the capacity to handle container loads of stock and rapidly turnover inventory should import from China. This model benefits from China’s cost-efficient mass production.
Importing Directly, Using an Agent, or a Buying Office
Deciding how to import furniture from China is the next step. Options include direct importation, using an agent, or employing a buying office, each with its pros and cons.
Direct Importing: Theoretically, direct importing offers the best price. However, an agent might source a better factory and price. While direct importation may yield the lowest unit price, a professional buying office can facilitate faster business growth by managing complexities such as new furniture ranges, assembly, instructions, and packaging.
Using an Agent or Buying Office: Agents and buying offices add a margin, potentially impacting your business's value. However, a good agent or office can add significant value by handling various challenges, making them beneficial in the long run.
Large businesses and established brands often own furniture-buying offices in China. This section will explore why this is advantageous.
Outsourcing to a Furniture-Buying Office or Sourcing Company
There are three primary methods for conducting business when importing furniture from China: contacting a supplier directly, using a sourcing agent, or employing a Furniture-Buying Office or sourcing company.
Different businesses and agents have varying levels of competence. My decade of experience in China, working with hundreds of importers, has shown the importance of a professional buying office. A dedicated office ensures that products, assembly, packaging, instructions, carton marks, and quality are consistently up to standard.
Aligning your business model with China’s strengths in mass production is crucial. Establishing mass production requires significant time and expertise, making it worthwhile for businesses needing a consistent supply of mass-produced goods.
Successful vs. Unsuccessful Business Models:
Model One – Not Suitable for China Furniture Import: A boutique business selling unique furniture pieces in minimal quantities should not import from China. The low volume and small market are not compatible with China’s mass production capabilities.
Model Two – Suitable for China Furniture Import: A business with high sales volumes, whether online or offline, that has the capacity to handle container loads of stock and rapidly turnover inventory should import from China. This model benefits from China’s cost-efficient mass production.
Importing Directly, Using an Agent, or a Buying Office
Deciding how to import furniture from China is the next step. Options include direct importation, using an agent, or employing a buying office, each with its pros and cons.
Direct Importing: Theoretically, direct importing offers the best price. However, an agent might source a better factory and price. While direct importation may yield the lowest unit price, a professional buying office can facilitate faster business growth by managing complexities such as new furniture ranges, assembly, instructions, and packaging.
Using an Agent or Buying Office: Agents and buying offices add a margin, potentially impacting your business's value. However, a good agent or office can add significant value by handling various challenges, making them beneficial in the long run.
Large businesses and established brands often own furniture-buying offices in China. This section will explore why this is advantageous.
Outsourcing to a Furniture-Buying Office or Sourcing Company
There are three primary methods for conducting business when importing furniture from China: contacting a supplier directly, using a sourcing agent, or employing a Furniture-Buying Office or sourcing company.
Different businesses and agents have varying levels of competence. My decade of experience in China, working with hundreds of importers, has shown the importance of a professional buying office. A dedicated office ensures that products, assembly, packaging, instructions, carton marks, and quality are consistently up to standard.
B) Furniture Import Licensing
A common misconception is that businesses and individuals importing furniture from China require a specific license. Generally, this is not the case. Here, we will briefly explore the requirements for importing furniture into the UK, USA, and Australia.
General Import Process
For most countries, the process is as follows:
1. **Arrival of Shipment:** When your consignment of furniture arrives (usually via sea freight), you must arrange customs clearance and delivery. Typically, this is managed by a pre-selected freight forwarder (either by yourself or your furniture-buying office).
2. **Documentation:** Ensure that the commercial invoice, packing list, bill of lading, and any other required documentation are accurate. As the importer, you are responsible for the correctness of these declarations.
3. **Payment of Fees:** You will need to pay relevant taxes (VAT, sales tax, duty, etc.), ocean freight (if purchasing on an FOB basis), trucking/haulage, port handling, and administrative/documentation charges. These fees should be pre-agreed to avoid unexpected charges.
4. **Logistics Negotiation:** A furniture-buying office can leverage their volume to negotiate the best possible logistics charges and handle these details for you.
5. **Offloading:** If you are importing a full container load of furniture, it is your responsibility to offload the container upon delivery.
Importing Furniture into Specific Countries
**United Kingdom:**
- No import license is required to import furniture into the UK.
- You must have a VAT number, or if you are an individual or a small business, an EORI number.
- No additional permits are needed.
**United States:**
- Importing furniture into the USA requires a customs bond.
**Australia:**
- If wood is used in the furniture or packaging, the container and furniture must be fumigated in China.
- A fumigation certificate, recognized by Australian border security, is required.
Understanding these requirements ensures a smoother import process and helps avoid unnecessary complications. Working with a professional furniture-buying office can further streamline these procedures and provide additional support.
A common misconception is that businesses and individuals importing furniture from China require a specific license. Generally, this is not the case. Here, we will briefly explore the requirements for importing furniture into the UK, USA, and Australia.
General Import Process
For most countries, the process is as follows:
1. **Arrival of Shipment:** When your consignment of furniture arrives (usually via sea freight), you must arrange customs clearance and delivery. Typically, this is managed by a pre-selected freight forwarder (either by yourself or your furniture-buying office).
2. **Documentation:** Ensure that the commercial invoice, packing list, bill of lading, and any other required documentation are accurate. As the importer, you are responsible for the correctness of these declarations.
3. **Payment of Fees:** You will need to pay relevant taxes (VAT, sales tax, duty, etc.), ocean freight (if purchasing on an FOB basis), trucking/haulage, port handling, and administrative/documentation charges. These fees should be pre-agreed to avoid unexpected charges.
4. **Logistics Negotiation:** A furniture-buying office can leverage their volume to negotiate the best possible logistics charges and handle these details for you.
5. **Offloading:** If you are importing a full container load of furniture, it is your responsibility to offload the container upon delivery.
Importing Furniture into Specific Countries
**United Kingdom:**
- No import license is required to import furniture into the UK.
- You must have a VAT number, or if you are an individual or a small business, an EORI number.
- No additional permits are needed.
**United States:**
- Importing furniture into the USA requires a customs bond.
**Australia:**
- If wood is used in the furniture or packaging, the container and furniture must be fumigated in China.
- A fumigation certificate, recognized by Australian border security, is required.
Understanding these requirements ensures a smoother import process and helps avoid unnecessary complications. Working with a professional furniture-buying office can further streamline these procedures and provide additional support.
C) Types of Furniture Manufactured in China
China's furniture manufacturing industry is incredibly diverse, producing virtually every type of furniture imaginable. Below is a comprehensive list of the different categories of furniture that are commonly manufactured in China:
Indoor Furniture / Upholstered:
China's furniture manufacturing industry is incredibly diverse, producing virtually every type of furniture imaginable. Below is a comprehensive list of the different categories of furniture that are commonly manufactured in China:
Indoor Furniture / Upholstered:
- Children’s furniture
- Children’s bunk beds
- Adult metal beds
- Adult upholstered beds
- Adult wooden beds
- Office chairs
- Dining chairs
- Leisure chairs/stools
- Tables
- Painted MDF/PB cabinets/chests
- Paper foil MDF/PB cabinets/chests
- Solid wood cabinets/chests
- Mirror cabinets/chests
- Sofas
- Outdoor rattan furniture
- Outdoor metal furniture
- Outdoor parasols
- Outdoor gazebos
C) Types of Furniture Manufactured in China
China's furniture manufacturing industry is incredibly diverse, producing virtually every type of furniture imaginable. Below is a comprehensive list of the different categories of furniture that are commonly manufactured in China:
Indoor Furniture / Upholstered:
China's furniture manufacturing industry is incredibly diverse, producing virtually every type of furniture imaginable. Below is a comprehensive list of the different categories of furniture that are commonly manufactured in China:
Indoor Furniture / Upholstered:
- Children’s furniture
- Children’s bunk beds
- Adult metal beds
- Adult upholstered beds
- Adult wooden beds
- Office chairs
- Dining chairs
- Leisure chairs/stools
- Tables
- Painted MDF/PB cabinets/chests
- Paper foil MDF/PB cabinets/chests
- Solid wood cabinets/chests
- Mirror cabinets/chests
- Sofas
- Outdoor rattan furniture
- Outdoor metal furniture
- Outdoor parasols
- Outdoor gazebos