In this article, I will list the reasons why electronic items are among the most difficult to import from China, where you can buy such products, and what are the most common mistakes made by inexperienced importers who are preparing to import electronics from China.
Importing custom electronic items (OEMs) requires some technical expertise
Let’s say you want to buy LED screens, the kind used to display advertisements on the walls of buildings or airports. You’re not actually buying screens, but a series of components that, when assembled, will become LED screens.
In fact, it is these components that determine the product specifications such as gloss, resolution, average lifespan, resistance to heat or cold, size, functionality and compliance with European certification standards such as CE, RoHS or FCC.
Some components act in perfect synergy when they are assembled to make a product. Others, on the other hand, are incompatible. It’s a difficult puzzle to put together, and a single mistake can render the entire product useless.
Compatibility of the various components
All this would not be a problem if the supplier was guiding the importer’s choices and ensuring the compatibility of the various components. But, due to the following reasons, Chinese companies that make electronic products tend to provide limited help:
- The manufacturing company may not have the necessary software and component knowledge to build the product you have designed and ensure its functionality
- Misunderstandings may occur. When working on a complex product, it is easier to confuse the importer’s instructions
I am not suggesting that all small to medium importers who do not have adequate experience avoid importing electronic items. My advice is rather to avoid, at least at first, customized electronic products (OEMs). Buying a supplier-designed product (ODM) is in fact much easier and safer. That’s why:
- Doesn’t require in-depth technical knowledge of the product
- The risk of encountering incompatible components is minimal as it is a product designed by the manufacturing company (rather than by you)
- If something goes wrong, the supplier can’t accuse you of selecting the wrong components. That’s not to say they won’t try (I still recommend signing a sales agreement before placing your order)
Most suppliers are used to applying the buyer’s logo on the product, and customizing the colors or packaging is usually not a problem. So you can sell a factory-designed product as “yours,” using your own brand.
Safety Regulations & Standards
Not all Chinese manufacturing companies have the experience and production capacity to make an electronic product that meets European certification standards.
Products that do not comply with standards are illegal and also, when it comes to electronics, there is a risk that the product may explode in the customer’s face (yes, it has already happened) or that you buy a container of goods with a defect rate of more than 50%.
Certified products are more expensive than non-compliant ones as high-quality materials and components and more complex assembly procedures must be used. And since many importers give more importance to the price than to the laws in force in the importing country, Chinese suppliers have no qualms about using fake certificates (knowing full well that the importer, satisfied with the price obtained, will not ask too many questions).
Here are some definitions of “fake certificate” (or otherwise not usable for your product)
- A certificate or certification test result manipulated with Photoshop or another photo editing program
- A result of certification testing for another product (instead of the product you are importing)
- A result of the certification tests carried out for the same product that is being imported but made with different components. In fact, remember that the quality of a product is given by the sum of the quality of the individual materials and components and that, if the product is assembled with different components, the certificate is no longer valid
Chinese suppliers who can produce compliant products
The percentage of Chinese suppliers able to produce products that comply with European regulations is often in the order of 5% (although of course this percentage can change depending on the type of product).
Suppliers who are able to produce compliant products usually meet the following characteristics:
- Its main sales markets include the European Union and the United States:Many suppliers focus on the domestic market (i.e. China), while others sell mainly in the rest of Asia; Such providers have no incentive to comply with Western safety standards.
- High registered capital:Suppliers with a high registered capital (e.g. RMB 5,000,000) tend to be more sophisticated; In addition, the price of the various machines required for the production of complex products can also be included in this figure.
- Price:As mentioned above, ensuring compliance with European or American standards involves a certain cost; So don’t expect the best suppliers – from the point of view of compliance with regulations – to be also the cheapest ones.
When importing electronic products from China, your product will have to comply with one or more European EC directives and, possibly, other regulations or standards as well.
There are four main types of regulations to consider:
- Standards/Directives concerning electrical safety;
- Standards/Directives concerning electromagnetic emissions;
- Regulations on the restriction of chemicals;
- Labelling requirements (e.g. CE or WEEE marking).
Depending on the market, the product, and its use, different regulations, standards, norms and directives must be respected. In the table below we list some of the most common ones concerning the European Union (note that the list should not be considered exhaustive):
| MARKET | REGULATION / DIRECTIVE | DESCRIPTION |
| EU | Low Voltage | Also known as the LVD Directive, it applies to products and/or components that have an input or output voltage between 50 and 1000 Volts in direct current (and between 75 and 1500 Volts in alternating current). |
| EU | Electromagnetic Compatibility | Also known as the EMC Directive, it applies to electronic products and/or components that may interfere electromagnetically with other electronic products or components that are nearby. |
| EU | Radio | Also known as the RED Directive, it applies to products and components that contain radio transmitters or receivers, WiFi, Bluetooth, etc. |
| EU | RoHS | The Restriction of Hazardous Substances Directive (RoHS) applies to all electronic components, and is intended to limit the use of heavy metals such as lead, cadmium, mercury and others. |
| EU | REACH | REACH regulates the use of hazardous chemicals; it applies to all products, not just electronic components. |
Labeling requirements, such as CE marking in the European Union or FCC marking in the United States, indicate that a given product complies with a given regulation, directive, etc.
Therefore, the importer must first understand what regulations apply to the product, ensure that the product complies with those regulations and, finally, inform the supplier what kind of labels will need to be affixed to the product and/or packaging.
Note that importing products that do not comply with current regulations is illegal, and for good reason. Non-compliant electrical and/or electronic components can cause accidents, even serious ones (e.g. an explosion or fire).
The photo below, for example, illustrates the difference between an original Apple charger, and a counterfeit one. The latter does not contain the essential components to cause the magazine to overheat and risk exploding.
Where are the best suppliers of electronic items?
Shenzhen, a metropolis located in Guangdong Province, is China’s electronics capital. That’s where you have to go to find products that are often found nowhere else in the world. However, it is good to keep in mind that even if the assembly takes place in Shenzhen, the components are often manufactured in Japan, the United States, Germany, South Korea or Taiwan.
The easiest way to get to Shenzhen is to fly to Hong Kong and then cross the border via bus, taxi or subway. While Hong Kong does not require a visa (if you are staying for less than three months), Shenzhen is located in China so you need to apply for a visa in Italy or Hong Kong.
Finding an Electronic Products Supplier on Alibaba.com
If you don’t have the time or financial resources to visit an Asian trade show, you can always find a supplier online. On Alibaba.com there are tens of thousands of suppliers from China and other Asian countries. In case you are considering this solution, I suggest you read How to buy from Alibaba in three easy steps and is Alibaba reliable?
Customs duties and VAT for electronic products
The term “electronics” refers to huge quantities of products, from LED screens to alarm systems and industrial electric motors. So duties and VAT can vary significantly. To calculate duties for the product you intend to import into Italy you can visit this website or use the Cookie Wizard website.
Scams
Many importers think that importing low-priced products under the “Apple” or “Samsung” brand is a smart move. But if a supplier offers you a branded product for a lower price than you can find at Trony or MediaWorld, you can rest assured that it’s either a fake product (i.e., an illegal product that will be confiscated by customs officers upon arrival in Europe) or a scam (i.e., the supplier is planning to run away with your money).
If you are interested in learning more about the most common scams to avoid when importing from China, I recommend that you rely on expert consultants who will guide you in your choices, request advice by clicking here.
Trade fairs dedicated to electronic products
Here are the main trade fairs dedicated to electronic products in China Mainland and Hong Kong
Canton Fair (Phase 1) (Guangzhou)
- Consumer Electronics
- Electrical and electronic components and accessories
- Computers and communication systems
- Household appliances
- Lighting and related
HKTDC Electronics Fair (Hong Kong)
- 3D printers
- Iot
- Drones
- Audio-visual products
- Branded products
- Eco-friendly products
- Packaging and design
- Navigation systems
electronic Asia (Hong Kong)
- Computers and peripherals
- Hardware
- Electrical and electronic components and accessories
- Batteries
- Solar panels
- Audio Tools
- Video Game Accessories
Global Sourcing Fair (Hong Kong)
- Consumer Electronics
- Electrical and electronic components and accessories
- Telecommunications
- Audio Tools
- Smart Phone Accessories
- Video Game Accessories
Summarizing…
If you are not an expert, avoid importing custom electronic products
Customized electronic products require specific knowledge at both the hardware and software levels. Don’t expect the supplier to be more knowledgeable than you or to guide you through product design.
If you don’t have the right technical skills, be content to import existing products and, at the very least, to print your logo on them and/or to use custom colors and packaging.
Don’t delude yourself that you can compete on price
Don’t try to compete on price with department stores that can achieve economies of scale and offer the product at retail for lower prices than you can buy! Instead, focus on niche products.
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