What To Be Wary Of When Buying Merchandise From Hong Kong

Doing business in any Asian country carries risks, butIf you are, buying goods, specifically from a
if you do your research well, trade there can bewholesaler, check out the availability of the stock.
highly profitable. All you need to do is take certainQuite often, when you buy from Hong Kong, your
precautions that are specific to the country, and youmerchandise can be on the waiting list with delivery
will find doing business in Asia is not be as thorny asthat you don't like. Buy directly from the factory
it seems to be.instead to get shipping advantages. This way, you
It is important, however, for those in US who areavoid costs of transport from the port of entry to
planning to trade in merchandise from Hong Kong tothe distributors' storehouse.
note that it is a free port that thrives on free trade.Check For Spares
It is not the same as doing business with mainlandGetting spares can be a drawback when buying
China.merchandise from Hong Kong. Check for spares. As a
Fortunately, the trading environment is somewhattest case, ask for a vital replacement component.
different from that of mainland China. It currentlyYou would not like to sell your products back in the
acts as an intermediary between China and the WestUS without being able to store adequate spares.
and has somewhat of a laissez-faire attitude. ThisEnsure A Warranty
means transactions between private parties in HongMany petty traders seem to skip warranty in many
Kong are free from state intervention, and thatcases. Merchandise, especially electronics, look to be
includes any restrictive trade practices like taxes,great bargain, so check out the guarantee issue.
tariffs and trade monopolies. This provides it with anThere is nothing like an international warranty. On the
edge over Mainland China in terms of Internet trading.other hand, local guarantee is okay if you visit Hong
Recently, though, China has introduced someKong often. However, be wary of no warranty; it
e-government and e-business programs to help itmakes good business sense to draft up your own
push the economy. Even then, it still is one up. Hongwarranty and negotiate it with Hong Kong traders.
Kong on a stand-alone basis is quite high onAuthenticate The Dealer License
e-readiness rankings as graded by The EconomistThis is a vital step. You may have verified goods
Intelligence Unit. The Economist Intelligence Unit is thefrom Hong Kong, but it is important to verify that
foremost research and analysis resource in the world.the dealer has a valid license.
It ranked second in the world in 2008 only behind theOther Issues
US. The rankings are based on six criteria: businessWhen buying goods in the US, consumers expect
environment, social and cultural environment, legal andcertain standard conditions. Some traders may push
policy environment, infra structure and supportingsales whatever way they can. A sensible way to
services.protect your business when buying products is to get
This is a fair indication that it is ahead when it comeseverything in writing. In addition, also check on a
to the ability to use information and communicationmoney-back guarantee and a factory recall
technologies, which should be reassuring toagreement. Many dealers in may not have any of
entrepreneurs from the US who wish to tradethese, though.
merchandise from Hong Kong.Finally
Nevertheless, there can always be some hiccupsBuying merchandise from Hong Kong can carry some
when buying merchandise from Hong Kong. Tradersrisks, but if you are well-prepared and informed, the
need to tackle these head-on if they want toadvantages outweigh the cons. After all, it has a free
expand their frontiers beyond the US. Here are sometrade policy so it does not charge tariffs on
important pointers to know before plunging intoimportation and exportation of goods. Besides, import
buying agreements with Chinese dealers.and export licensing is kept to a minimum.
Delivery Time