Things you must know if you want to import from China to Paraguay
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During the last decade, more than 25 percent of the imports made in Paraguay come from the People’s Republic of China.
This is not uncommon, because in fact, China began the new century with the goal of becoming 50 years in the largest economic power in the world.
The first step for this has already been taken, and is to become the largest industrial power and major exporter worldwide.
In addition, the growth of its domestic market has led to its consolidation in second place as an importer, second only to the United States.
In Latin America, the presence of Chinese products is palpable in all sectors, from heavy industry to the automotive market, household appliances, electronic equipment and capital investment.
In turn, China imports from Latin America a large number of raw materials such as oil, iron, aluminum and strategic minerals for the technology industry, such as coltan and lithium.
China executes a large national plan with global reach called “A strip, a route”, which seeks to create a commercial and infrastructure support system between Asia, Africa, Europe and Latin America.
Currently, 70 countries have signed trade and investment agreements with China, including Chile, Panama, Bolivia, Venezuela, Antigua and Barbuda, Trinidad-Tobago and Guyana.
These agreements imply that China invests in infrastructure and services in countries that do not have enough resources to undertake large-scale projects.
In return, the doors for free import and export of products between China and each signatory country are opened.
In the case of Paraguay, there is intense import activity from China, but it is not exported at a higher level for political reasons.
Paraguay is one of the few countries in the world (17 only) that recognize Taiwan as an independent nation.
China considers Taiwan a rebel province and not an independent country.
Paraguay’s position on the Taiwanese problem makes it impossible to sign a free trade agreement between the two nations.
However, this does not prevent large quantities of Chinese products from reaching Paraguay. Up to 26 percent of Paraguayan imports come from China.
This happens because the Paraguayan legal system greatly favors the movement of capital and with it, imports from anywhere in the world.
According to the Foreign Trade Service of the Central Bank of Paraguay, in 2017 the trade deficit with China reached 17.4%, equivalent to US $ 3,422 million.
What products are the most imported from China?
By 2011, imports from China consisted of electronic products, almost entirely.
However, most of this merchandise was destined for re-export to Brazil and Argentina and only a small percentage remained in the Paraguayan market.
By 2018, the situation had changed radically, with a sharp increase in the import of agrochemicals and insecticides for the Paraguayan countryside.
Today, auto parts kits are also imported to assemble vehicles of Chinese brands established on Paraguayan soil, which are partly re-exported to Argentina, Uruguay and Brazil.
How are imports from China tracked in Paraguay?
Although Paraguay does not have diplomatic relations with China, in Paraguay the Paraguay-China Industrial Technological and Commercial Industrial Cultural Union (UCITC) was created, with offices in both countries.
The UCITC promotes the commercial approach between official organizations and private companies in Paraguay and China.
In turn, the Ministry of Finance of Paraguay signed an agreement with the UCITC to create the Cargo Verification Information System (SIVECA).
This system provides the MH with detailed and updated information on imports arriving in Paraguay from the People’s Republic of China.
Why should I import from China?
China has several advantages as a supplier of products to import into Paraguay, due to its low costs and continuous technological innovation.
Some of these advantages are:
- Availability of a variety of products commonly used among the population.
- Availability of systems that facilitate the purchase of small batches of merchandise, or bulk purchases, as required by the Paraguayan importer.
- Excellent infrastructure for maritime and air transport, and its related services, at competitive prices.
An important point to keep in mind is that the advantages of importing from China to Paraguay are greater if they are products such as: An important point to keep in mind is that the advantages of importing from China to Paraguay are greater if they are products how:
- Chinese brand cell phones,
- Toys and sports equipment.
- Cleaning products and household utensils.
- Televisions and appliances of white line.
- Spare parts for vehicles of Chinese, Japanese, Korean or European brands.
- Industrial machinery of all kinds.
- Clothes and shoes.
How can I contact a Chinese supplier to send products to Paraguay?
There are thousands of ways to bring products from China on your own, but it is advisable to do so in an organized and safe way.
For this, there are three regular channels that you can use to interact with Chinese suppliers:
Through the internet and binational or international business networks.
On the recommendation of other Paraguayan importers or Mercosur countries.
Contacting them personally at trade shows and product promotion events.
China is a highly technical country and therefore thousands of companies and suppliers in that nation use the Internet and social networks to do business with the rest of the world.
However, you should keep in mind that Chinese suppliers use the English language as a means of communication with foreign customers.
In very few cases there are suppliers willing to negotiate in Spanish.
One way to establish contacts electronically is using the Connect Americas tool, created by the Inter-American Development Bank (IDB).
This is a kind of social network in which entrepreneurs from all over the continent can exchange information about suppliers and products from China and other countries.
If you prefer to listen to the advice of others, it is useful that you contact Chinese suppliers recommended by Paraguayan importers.
This method will save you time and the results can be very positive as the relationship between the Chinese supplier and its Paraguayan counterparts grows.
This is because the Chinese commercial culture places great weight on mutual trust. That is, Chinese suppliers often expect a certain level of loyalty from the customer.
For this reason, to the extent that the Paraguayan importer works with the Chinese supplier, it will increase confidence and this can grant better payment facilities or give access to new or innovative products.
The third way is to make contacts at fairs and business events.
China actively participates in the main events for the promotion of products and services internationally, in almost all areas.
Attending these events will ensure you can contact and do business with a high-level supplier or even with the manufacturer of the product you are going to import into Paraguay.
What is the necessary documentation to import from China?
All business done with Chinese companies must be processed before the Customs of China and the Chinese Council of Intracuarentena (CIQ).
No product leaves or enters that country without having paid the respective tariffs and registered the operation.
Therefore, you must ensure that your supplier meets the requirements of your country before sending the merchandise, to avoid mishaps.
For its part, to import any merchandise to Paraguay, you must have a series of documents that must be submitted
If you are a casual importer or natural person, you will be required to submit the following documents:
- Paraguayan identity card or valid passport.
- Invoice and knowledge / guidance / CRT of the cargo.
In the event that the importer is a foreign natural person, he must present the following documents:
- Valid passport
- Address Information
- Import request signed
- Purchase invoice and other documents that support the import.
If the import will be done by a company or legal entity, the requirements are:
- Paraguayan identity card or Passport of the legal representative of the company.
- Society Constitution.
- Invoice and knowledge / guidance / CRT of the cargo
- En cuanto a los permisos de importación, estos variarán según el tipo de mercadería a importar desde China.
In addition, for each type of products the permit will be issued by a different institution.
For example, food and beverages will receive import permits from INAN, while cosmetics and medicines must be authorized by the Ministry of Health and BS DINAVISA.
Wood and derived products must have authorization to import INFONA and the plants, seeds and derivatives of SENAVE.
Cables, rods and metal sheets must be authorized by the Ministry of Industry and Commerce.
To this is added the obligation to present commercial invoice, certificate of origin and bill of lading.
What means of transportation are convenient to import from China?
One of the reasons for China’s success as a global exporter and importer is the excellent cargo transportation network that this country has, both air and sea.
However, it is vital to choose the means of transport to use, due to the enormous distance that separates Paraguay from the Asian continent.
The cargo sent by air transport may take about 4 days to reach Paraguay. In the case of shipping by sea, the time increases to 2 or 3 months.
If you have doubts about the method to use or want to find the best cost and efficiency way, seek professional help from companies such as Alfa Trading.
Alfa Trading has 25 years of experience in transport logistics nationally and internationally.
At Alfa Trading we can help you prepare your cargo for shipping from China to Paraguayan territory.
We have Freight Agents in the main ports and airports of the world and we can help you in the tracking and customs procedures of your merchandise.
But the most important thing is that we also offer technical assistance and can help you successfully prepare every stage of your import process from China or anywhere else in the world.
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