My company currently imports about 5-6 containers a month from China into the USA and we are thinking about setting up a warehouse over there so that we can consolidate shipments from various factories, inspect our goods before they ship, and possibly do some light assembly work using the parts we are buying from our Chinese vendors.

My question is what is the best way to go about doing this?  Do we need to setup a trading company over there to buy our products domestically and then export them to us or are there safe zones where our factories can still export the products to our American facility but they are checked and packed in our secure warehouse before they are loaded on the boat.

Also, what are the steps necessary to setup an overseas trading company or a Chinese branch of our American company?

Do business in China, purchase directly from China market, need a partner to help in China, need Chinese assistant to follow up order, collect the goods for inspection, we will the one who can supply one-stop business service to you, also we have warehouse in Guangzhou, China. We believe we can handle your business well, more help please contact freely anytime. hkfancy(at)yahoo.cn

Hi,

The best you find some one who you can believe and know your products, that can help you inspection all of product. No need set up branch and office. You only rent place where your staff can work.

We can provide to you Shenzhen, China warehouse & logistic services. Even your factory / supplier don't have export license.  For more details you can contact me heaterho at gmail doc.

As you said, setting up a warehouse in China seems a wise idea. But I think you should have a detailed survey on the address and the market. I am the market manager of onlywo.com, our company ever faced such a problem.

Hi Vechiles,

Is setting up a warehouse in China a good idea ... it depends!  We are a stamping and injection manufacturer and actually we face a similar problem as you, but in opposite direction.  We are thinking to setup warehouses in USA and Europe such that we can consolidate the shipments and distribute to customers in JIT manner for our appliance and automotive customers.

For your case, I believe you need to ask yourself a question:

1. in long run, do you need to keep a team of people in China for sourcing ?

2. are there a lot of "light assembly work" to be carried out in China by using the low labor cost here ?

If the answers to both questions are negative, I suggest you give up your idea. To setup a warehouse in China with "some operations" is not just a matter of paying salary but a lot of misc administrative works. We have factories and office in China, but I always prefer staying in HK in order to escape from the troublesome factory/HR jobs.

A better way is to use a procurement agent who can offer you order management AND re-packaging/assembly services. My company is setting up a new business unit with this service. Drop me an email if you need to know more. (benho@green-precision.com)

Hi Vechiles,

There is no reason to set up your own warehouse in China. It's need to rent a land, you need to connect with Chinese government, employ workers, etc. Why don't you ask some companies with storage services.

As regards how to set up a chinese company/office/representative, you'd better ask a agent who can register a company/office/representative in Chinese legally for you.

There are some WORLDCLASS logistics companies that can have facilities in most of the ports in China and also contacts in your home country. This is the most efficient way to consolidate your goods from China, but also, you must take in account the location of your suppliers, if some of them are in North (let's say Tianjin) and some other in South China (Guangdong) then the consolidation is not efficient as the inland trucking fee might be quite expensive....

If you need some help or contact with those logistics companies let me know, my company is in constant contact with them as we provide "Pre-shipment Inspection" services for big retailers in North America that they prefer to hire these logistics companies for consolidating their cargoes rather than all the bureaucratic expenses that can be having warehouses everywhere in China.... Good luck! telescopeitl@gmail.com

My suggestion is do not make unnecessary expenses.

First you need to pay monthly rent, salaries, company admin costs, and you are subject to theft (loss inventory).

Find a subcontractor who can do this job for you and you pay for what you make, no running costs. 

If me, I will ask your shipper to consolidate the goods and make the assembly in your Warehouse in the USA. 

I always tell my shipper to consolidate my shipments, My shipper even consolidated in a 40foot from x10 different manufacturers. 

20 years experience doing business with china

Vechiles,

The follow few points you possibly need to confirm:

1) Where your vendors located in? In east part of China or in South of China? And by which port your goods ship out? In east part you should choose Shanghai Port, in south then use Shenzhen port ( Yantian port)

2) Once you confirmed the location of port, you'd better choose a nearby bonded warehouse in bonded area of bonded logistics park. Bonded logistics park(BLP) is better than bonded area as it is a "upgraded version" for bonded area, and has more functions ( tax refund issue for China mainland vendors, this point  may critical for them.)

3) You even do not need to set up a offce/company in China, what you do is sending orders to the logistics company in BLP and let their staff know what goods to consolidate. The logistcs company has facility of forklift/loading/unloading/consolidation and they may do some value added service in the warehouse such as picking/sorting/packing/QC/remarking.  And they also can arrange the vessel for shipping.

If you really need to set up a branch company, I suggest to set a HK branch as Hongkong is a free trade zone, tax and laws is much easier for you.

Finally, we have a BONDED Warehouse total area 65000 sqm in Shenzhen, Guangdong, we may do consolidation and if possible, we hope you may come for sit visit.

My contact:

Email: nick.liu at cohl.com

web: www.logisitcs-china.com

If 5~6 container per month and purchased  in various of products then set up a warehouse isn't a bad idea. We are a sourcing agent in Shenzhen, China, can give you some advise. lucky@sourceshunter.com.

Hi, You don't need rto establish a company in China if you just buy cargo from China. You just trade with your supplier with exw-works China or FOB China ports terms will be ok.

I'm Mackin from Shining Ocean Logistics, I'm willing to help you follow up your orders to factory, we can consolidate your cargo as that we have consolitation services for clients. We can even go to inspect your cargo if you really need us to do so, and we have warehouses at main ports in China.

If interested please send me email to my private email adress: vc_mmc@hotmail.com, our website: www.shiningocean.cn.

Hello,sir, you can consider handle your all logistics to our professional company.we are listed company and the warehouse is quite near Chiwan port,SCT port. The point is we operate client like USA SULLAIR over 20 years, so safety and responsibility. please feel free to contact.You don't need setup a branch,just control the product and we will ship to you.

Good Morning Sir,

We like to develop the E-commerce business in China and develop the logistic for distribution the goods to the consumer market.

I like to have all information for to set up all solution and all information and cost to take one decision.
Please give me clear also your position in this matter and if you will take care all questions or you just give all information and I will arrange the solution with Advisor office in China.

Thank you so much for your support

Take care

Raffale 

Dear vechiles3

   This is a classic Rep office case for you . What you have to do is setting up a Representative office, then rent a warehouse. hire several staff here in China to back you up for shipping, QC or other non-directly business operation activity.

  If you wanna know more about setting up Rep Office in China, please feel free to contact me via chesterchen123@gmail.com