What is general trade import? YESMORE International explains!

1. Definition of General Trade: Simply put, general trade involves the sale of goods between domestic and foreign companies using conventional transaction methods. For example, many of the imported, high-end cosmetics and foreign electronics we buy in shopping malls and counters are imported through general trade. Domestic companies purchase these goods from foreign suppliers, pay the appropriate taxes and fees, legally ship the goods into China, and then sell them to consumers on the market. This entire process constitutes general trade.

2. Characteristics of General Trade: Strong autonomy: As long as the goods comply with national regulations, we can basically arrange to import any goods! Furthermore, after importing, companies have the final say over who they want to sell to and how they want to sell, without too many restrictions, resulting in a highly flexible business model. Standardized Processes: From contract signing and goods transportation to customs declaration and tax payment, and finally, picking up and selling goods, every step is clearly defined by laws, regulations, and procedures. While there are many steps, as long as you follow the rules, there should be no major issues, and it's also relatively user-friendly. Direct Market Access: Imported goods can enter the domestic market directly and reach consumers directly. As long as you accurately select products and capture consumer demand, you won't have to worry about selling them. The market potential is enormous!

III. General Trade vs. Other Trade Methods: Some people often confuse general trade with processing trade. Here's a comparison:

General trade: Imported goods are sold directly in the domestic market, such as imported snacks sold directly on supermarket shelves.

Processing trade: Imported goods aren't sold directly, but are processed and then exported or sold domestically. For example, a domestic company might import fabric, process it into clothing, and then export some of it abroad while selling some domestically.

Bonded trade also differs from general trade. In bonded trade, goods are stored in a bonded area, temporarily exempt from taxes until they are ready for sale in the domestic market. In contrast, with general trade, customs duties, VAT, and other taxes must be paid upon import.

IV. Advantages and Risks of General Trade

Advantages: Abundant Market Opportunities: The domestic consumer market is enormous. By identifying popular categories, you can capture a share of the pie! Imported maternity and baby products and health supplements, for example, have always been popular. Brand Partnership Opportunities: Through general trade, you can collaborate with many well-known international brands, introduce high-quality products, and enhance your company's competitiveness and visibility.

High Risk Costs: In addition to the payment for the goods, you also have to bear various expenses, such as transportation fees, customs duties, and VAT. If you don't plan your funds well upfront, you may face financial pressure.

Policy Risks: Import and export policies are subject to frequent changes. If you fail to monitor them promptly, they may affect your imports and even cause losses. Examples include tariff adjustments on certain commodities and changes in licensing requirements.