Importing from China is more complex than it seems, especially when importing from China to the US. As a business manufacturer, you must ensure you comply with US safety and regulatory standards.

There is a lot to take care of when exporting to the US, especially for a product like cosmetics that come in contact with the skin. Everything has to meet the standards, from complying with FDA standards to packaging and labeling.

You must pay attention to shipping, transportation, packaging, and manufacturing. Selecting an appropriate shipping method is critical to your business’s success and pricing. Then, there are the import duties and potential value-added taxes.

If you are a Chinese cosmetic brand that wants to establish a brand in the USA, this blog is for you. It contains all the up-to-date information about which costs to consider when setting the final price of your cosmetics in the US market.

Understanding the Regulations

1.FDA Approvals

FDA stands for Food and Drug Administration. An authority regulates various products, including medicines, food items, and cosmetics. Its purpose is to assure the safety of human health and provide security for its well-being.

If you import cosmetics from China, you do not need premarket approval. However, the FDA does prohibit the use of certain ingredients. The FDA has provided a list of color additives that are allowed to be used in cosmetics. Before exporting to the US, you must ensure that your cosmetics contain FDA-approved color additives.

They should not contain any color additives that are prohibited by the FDA. Additives like Dithiol, chloroform, and Amaranth are not allowed in cosmetics by the FDA.

2.Documentation

Compilation of complete documentation is essential while both exporting and importing. Be it any country, there is only transit with complete documentation. When importing from China to the US, you need to comply with the following:

• Complete FDA requirements

• Relevant Chinese export regulations

You can only export something from China if you get an export license and permit from Chinese authorities. When exporting from China, make sure you have all the following documents:

• Commercial invoice

• Packing list

• Certificate of origin

• All necessary documents for customs clearance.

Another essential thing is compliance with US and Chinese labeling requirements.

3.Labeling Requirements

With respect to labeling the host country has always had some clear regulations. Printing of certain information is mandatory on the label. Labeling requirements for importing from China to the US will be discussed in detail later in this blog.

Different Costs when Importing from China

In this section, we shall analyze the different costs associated with goods when importing from China. It is a complete guide that explains all the essential costs, from import duties and labeling costs to various possible shipping options. Let’s examine each one in keen detail.

1. Choosing the Right Shipping Option

Shipping costs are a significant cost to consider when importing from China. In this section, we shall analyze the various shipping options. However, between China and the US, only air and sea freight are applicable. This is because there is no land route between the two countries.

However, we shall still include land freight information to inform readers about the shipping options between the two countries.

It is essential to know that each shipping option has unique advantages and costs.

2. Air Freight

What do you mean by air freight?

A mode of transportation that uses air cargo or airplanes to take goods from one place to another. Air f eight follows the same gateways as passenger airlines or commercial airplanes. The only difference is that it carries goods instead of passengers.

One should know the difference between air cargo and air freight here. Cargo means the goods that need to be transported. Often, it needs a third party for transportation. Airfreight is the company that moves or transports this cargo onto its airplane.

Air freight is a primarily used mode of transportation when importing from China to the US. Let’s look at its advantages and Limitations.

Advantages of Air Freight when Importing from China

• Air freight is the most valuable and fastest option, considering the various forms of transportation available.

• Cosmetic items are always in high demand and get sold out really quickly. Customers demand restocks. When importing from China, air freight is the fastest way to restock items. It just takes a day or two to restock the items.

• Quick restocking and easy availability of products increase the level of customer satisfaction.

• A significant advantage is the low cost of packaging in air freight. Manufacturers save much money on packaging in air freight. Goods do not need heavy packaging since the conditions are protected and not very harsh. Especially in the case of cosmetics, no heavy packaging is required. Cosmetics are not heavy in weight. They are light in weight and handy.

• Many people have yet to learn, but cargo packaging through air freight is trackable. Keeping the customer informed is a major advantage. You can track the location of your good twenty-four-seven.

• The time of delivery is known. You are mainly aware of the arrival and departure times of your goods.

• Another major advantage is the reduction in warehousing costs, especially for cosmetic products. When goods are transported immediately after production, they spend minimal time inside the warehouse.

Disadvantages of Air Freight

• The high cost makes it unaffordable for several manufacturers. You have to pay a hefty amount in terms of air freight fees. Unfortunately, not all businesses can afford this. The high cost is, however, justifiable. The cost of the craft, the fuel, security measures, and the use of the whole airport infrastructure justified the high cost associated with air freight.

• Another disadvantage is that it does not offer door-to-door delivery. Door-to-door delivery is possible only in the case of land freight. Unfortunately, land freight is not an option when importing from China to the US. You must first import the products through air or sea freight and then deliver them to your customers.

• Bad weather is a significant factor affecting the efficiency of air freight. Flights can be canceled, which can cause delivery delays. Remember the period of coronavirus, when the world came to a halt? During that time, businesses almost collapsed because air freight was banned.

3. Land Freight

Transportation of goods through the medium of land is known as land freight. Further classification of land freight is termed as domestic and international land freight. Land freight involves the movement of goods through:

• Rails,

• Roads,

• Trucks and other specialized vehicles.

Domestic land freight is the transportation of goods within the borders of a specific country. When it is done between cross-borders, it is known as international land freight.

For international transportation of goods, one needs

• specific documentation,

• compliance with customs regulations and

• logistic coordination.

Let’s look at the advantages and disadvantages of land freight transport.

Advantages of Land Freight Transportation:

• Land freight transportation is very flexible. You can transport anything, be it small boxes or large goods. Everything is suitable for transportation.

• Another advantage not available with sea and air freight is door-to-door delivery. You can pick up goods from your warehouse and transport them directly to your customer’s location. This makes door-to-door delivery possible, which is a major catch in business.

• For short and medium distances, land freight is the most suitable and cost-effective option.

Disadvantages of Land Freight:

• Land freight transportation is only one suitable option, especially for fragile goods. It is more likely to damage the goods. Take glass perfume bottles, for example. If kept in containers for extended periods, they can get damaged or broken. They can even break if the road conditions are harsh and bumpy.

• Land transportation is more time-consuming for long distances. Delays in deliveries can lead to dissatisfaction among customers.

• Accidents are probable, so products may be lost or damaged during land freight transportation.

• Sometimes, international transportation requires days and weeks of customs clearance, which can lead to loss of goods. Complying with international regulations is also a big hassle.

4. Sea Freight

The use of sea cargo ships for transporting large goods is known as sea freight. Transporting goods across the world is the most common mode of transportation. Transportation of goods through ocean or sea freight consists of the following three steps:

• Loading of goods to the cargo or shipping container

• Unloading the vessel at the respective airport

• Transportation of goods to the port that is nearest to the owner

The modes of transportation in sea or ocean freight are cargo ships, containers, specialized vessels, and bulk carriers.

Let’s have a look at the advantages and disadvantages of sea freight.

Advantages of Sea Freight

• What makes sea freight a more desirable option is that it is incredibly cheap, especially in comparison to air freight. According to an estimate by the World Bank, sea freight is twelve to sixteen times more cost-effective than air freight. A significant reason behind sea freight’s cost-effectiveness is its large capacity. It can carry more load in a fixed time than other modes.

• Another primary reason sea freight is less costly is that it requires less maintenance. Of course, the maintenance cost of a ship is less than that of an airplane or a rail.

• Sea freight is the most desirable shipping method between countries that are continents apart. That’s why it is also a popular method of goods transportation between China and the United States.

• Sustainability is an essential factor to consider these days. Sea freight is also more sustainable than air and land freight. This is because cargo ships consume much less fuel than planes and aircraft.

Disadvantages of Sea Freight

• Slow speed is a prominent disadvantage in sea freight. Sea of eight is the most time-consuming mode of transportation.

• Land and air freight have fixed routes. In the case of sea freight, there is no fixed route. Furthermore, it is difficult or nearly impossible to track the progress of goods.

• This method is suitable for established and large businesses. There are more appropriate modes of transportation for all business owners.

Understanding the Shipping Cost

Understanding the shipping cost is essential. Especially in the cosmetics business when you are importing from China to the US. As discussed before, there are several opinions available. These include air and sea freight. Other than these, you have DHL, FEDEX, etc. The selection of the appropriate shipping method depends upon the following factors:

• Size of shipment

• The time of delivery, i.e., when do you need the shipment

• Your budget

You should choose the option that delivers on time and within an affordable budget. Another essential thing to consider is tracking. Try to choose the shipping method that provides route tracking.

If you want the delivery of goods to be timely and quick, choose air freight, especially when importing cosmetics.

Choose sea freight if your cosmetic shipment is large or bulk and you have ample delivery time. It will help you save a lot of money.

Full Container Load FCL):

A full container load means that the goods, in this case cosmetics, take up a lot of space in the container.

Less Container Load (LCL):

Less container load means that the cosmetics partially fill the container space.

Both FCL and LCL have a significant impact on the shipping price of goods.

Understanding the shipping cost is essential to setting the final price of your cosmetics. Other than shipping costs, taxes, duties, and regulatory costs must also be clearly understood.

Claims on Cosmetic Labels

Cosmetic labeling is essential. It provides information about the ingredients of the products. Provides directions for use and informs about the product’s suitability for different skin types.

Claims on cosmetic labels include the commitment and promise that the product delivers to the consumers. Some labeling requirements apply when importing cosmetics from China to the US, and these requirements must comply with FDA approvals.

Cosmetic labels should mention the following:

• Net weight and quantity of the cosmetic product

• The identity of the cosmetic product

• The name of the business

• Place of the business

• Material facts, warnings, cautions and

• The name of the distributor.

Another rule is to list the products’ ingredients in descending order. Also, all the information should be written in English: there should be accurate information on the product’s labeling.

If cosmetic products do not adhere to the guidelines above, the FDA will reject them. The products will no longer be suitable for distribution and sale in the US. Furthermore, the FDA is liable to take any regulatory action.

Packaging Requirements

The packaging should be top-notch when importing cosmetics or any other goods from China to the US. Both packaging and labeling are closely related to each other. The packaging should have complete information about the products inside. It should mention the weight, quantity, and name of the product.

The packaging should be strong enough to protect the goods inside. The US has set some safety standards and regulations for product packaging. Make sure that you comply with all such standards and regulations. They are for the safety of your products.

Impact of Import Duties

Understanding the impact of import duties when importing from China is essential. Import duties, also known as tariffs, affect the price of the goods, which in this case are cosmetics.

The value of import duties is different for different countries. Each product has a different import duty value, even in the same region. Import duties depend upon the following factors:

• Value of goods

• Freight

• insurance

The determination of the final price of the product depends upon import duties. The final price is the one on which you do product placement. The market competitiveness of the product depends upon this final price. The final price is directly proportional to the import duties.

The US customs will determine the import duty on cosmetics. However, several other sources can also help you determine the import duties on your products.

If you are a cosmetic business intending to build a brand in the US, understanding the import duties is very important to your business’s success. It will help you determine the final price of your product in the market.

CONCLUSION

Importing from China is a lengthy process. From import duties to FDA requirements and shipping, there are a lot of protocols to follow. There are many costs to consider. Compliance with the regulatory standards is mandatory; however, it is not impossible. You can also get assistance from a third-party broker or shipping provider to simplify tasks. Whichever option you choose, make sure that you price your product wisely in the US market. This will help you maintain competitiveness in the US market, among other brands.

Frequently Asked Questions

• Is there a different tax on high end cosmetics when importing from China to the US?
  • Yes. In case of high end cosmetics a consumption tax of 15 percent is levied. High end cosmetics are products with a dutiable value that exceed 10 yuan/ml(g) or 15 yuan/pc.

• When importing from China to the US what is the import duty?
  • The current rate of import duty on cosmetics lies between 4.9 percent to 5.8 percent. These rates depend upon the country of origin . Also they are determined once the cosmetics arrive at the US port.

• What is the time period of arrival of goods from China to the US?
  • If you are using standard air freight then it might take seven to ten days for the goods to arrive. Through sea freight it might take long i.e twenty three to twenty eight days if you take a fast sea route. Regular sea freight takes twenty seven to thirty five days. Slow sea freight takes thirty five to forty days.

• Do I need premarket approval from the FDA?
  • You don’t need pre-market approval from the FDA when importing from China to the US.FDA issues a Voluntary Cosmetic Registration Form(VCRF) to regulate proper labeling and safety of cosmetic products.

• Is there any custom code for beauty products?
  • Yes there is.HS code or Heading 3304 is the custom code for products related to skin care and beauty.

• What is the fastest shipping method when importing from China to the US?
  • Of Course the air freight is the fastest shipping method when importing from China to the US.