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Frequently asked questions about manufacturing in China |
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Why Manufacture In China? |
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China has an abundant supply of educated and motivated labor resources at a fraction of the costs for western production personnel. Your competitors are gaining a cost advantage by moving their high labor content processes to China to leverage these tremendous savings. You will need to respond to this phenomenon or lose a competitive edge in your market. |
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What Products/Industries Are The Best Candidates? |
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Almost any products can be manufactured in China. The best candidates are those that are high in labor content with low weights and volumes. Our focus is on the electrical and electronics products for this reason. |
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How Long Does It Take To Become Operational? |
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Chinafacturing Solutions, with its unique manufacturing applications services provider program (M-ASP) can have you up and running in weeks…not months! |
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How Do I Find Staff? |
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Chinafacturing Solutions will recruit qualified staff on your behalf and present them for your approval. |
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What About Contract Manufacturing? |
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Contract Manufacturing is an optimal solution for companies looking to outsource their non-core competencies. Manufacturers engaged in their core business who wish to control their schedule, quality, and intellectual property will generally find direct manufacturing operations preferable. Chinafacturing Solutions is engaged in assisting you to manufacture your products directly in China. |
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Will I Pay Duties? |
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That will depend on your product's HTS code, many products now enter the US duty free. If your products are subject to duty it is generally no more than 2-5% on the added value (i.e., low-cost labor). China's membership in the WTO removes the threat of MFN cancellation and the uncertainty of duty status that formerly existed. |
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What About Mexico? Isn't NAFTA Free? |
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Absolutely not. NAFTA provides for a gradual phasing out of duties. Moreover, the cost of record keeping and government audit reduces the financial benefits of NAFTA. Proof point: many manufacturers pay a Manufacturers Processing Fee (MPF) upon import into the US in lieu of taking the NAFTA exemption. |
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How Will Freight Affect My Costs? |
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Your freight costs will vary by weight, frequency, and mode of transport. Freight is an unavoidable cost of offshore production. These costs are offset by substantial labor savings. Moreover, consolidation and air freight competition are keeping rates low. |
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Can You Source My Products For Me? |
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Of course. If you are not ready to produce products yourself in China, our staff of experts would be pleased to find you local sources to take advantage of the tremendous cost savings that China can provide. |
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Chinafacturing Solutions, LLC |
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4465 Oak Pointe Drive |
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Brighton, MI 48116 USA |
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Phone: (+) 1 810 229 5677 |
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email: info@chinafacturing.com |
