How To Source Melatonin Raw Material From China (Step By Step)?
Hi there. If you are a new importer of melatonin raw material and want to source it from China, this is the ultimate step-by-step guide to importing it.
Step One: You need to find reliable melatonin suppliers.
How do you do it? There are plenty of ways.
1.1 Supplier Directory such as Alibaba, Global Source, Chemical Register, pharmacompass, DHgate, ECPlaza, EC21, etc.
1.2 Search Engines: google, bing, yahoo, Yandex
1.3 Industry Exhibitions: CPHI, API China
1.4 Import/Export Records: Panjiva, ImportGenius (Both are paid services)
1.5 Recommendations from the supplier you have worked with.
1.6 FDA/TGA/EDQM official sites to check the registered suppliers
For more details on how to find reliable chemical suppliers in China, check our previous posts.
Step Two: Get the net price ideas for melatonin. (without shipping, handling, etc.)
Once you have several reliable suppliers, it is time to send inquiries and collect quotes to compare.
Meanwhile, you will need to check what types of certificates are available.
You should pass those suppliers without certificates, such as HALAL, KOSHER, or ISO.
Those certificates ensure product quality, and you may also need them to apply for your import permits.
Ok, now back to melatonin prices.
You will generally receive offers with reasonable or not-so-good prices, so you need to know the general market price of melatonin.
2.1 How Much Does Melatonin Powder Cost In 2023?
The melatonin raw material price from octagonchem in 2023 is around 120~130 USD/kg for commercial order quantities such as 1000 kg or more, FOB Shanghai.
If you have a demand of 300 KG, our cost is around 140~150 USD/KG.
Our prices are subject to stock status and seasonal changes.
For more accurate, updated prices, please get in touch with us directly.
Also, check its export prices below on pharmacompass for a price idea.
The average export price from India is 956 USD per kg, which is absurdly high.
You can also see that the export price from China to India is around 156 USD per kg, which is a usual and reasonable cost, close to the actual cost of pure powder.
So now you have an idea of the price for it and can compare the offers in your hand with the market price.
Pass those above 160 USD/KG, paying special attention to those around 130 USD/KG. Try to get the buying cost as low as possible and protect your margin.
However, beware of offers below 110 USD/KG. These can be from fishy businesses. Please don’t order from them unless you are 100% sure.
Step Three: Calculate other fees, such as Import Duties and domestic Shipping Costs, to get the total costs.
To determine import taxes, you must know the tax rates on the imported raw materials.
Tax rates are typically based on the HS Code for Melatonin or the Harmonized Tariff System (HTS) classification.
3.1 What is the HS Code Of Melatonin? (HTS)
Melatonin powder is an organic compound with the HS Code 2933990099 in China. It belongs to a group of organic compounds called ‘other heterocyclic compounds containing only nitrogen as heteroatoms. ‘
Check the link to look up its HTS in the USA.
There were customers requiring us to use 2937900000.
Please note that 293790 was already replaced by 293399 in China Customs in 2020.
However, how it is classified in your destination country is another matter; you should consult an import broker to ensure this.
Usually, there are three types of fees to be levied by your Customs: Value Added Tax, Import Tax, and other Customs fees, and the total of 3 will be the fees from your Customs.
Step Four: Place an order and make the purchase. (Make sure you have the import permits before you pay)
After checking those certificates and price breaks, you have selected the most suitable supplier for this import.
You negotiate payment and trade terms, confirm the lead time and quality standards, sign the contract with the supplier, issue a PO, and request their wire transfer instructions for future payments.
Sure, there are plenty of details on the negotiations, including convincing the supplier to comply with the agreed-upon quality standards and lead time, reducing your buying costs to a minimum, etc.
If you are interested in those terms, comment below, and we will discuss them in detail in this segment: Shipment of the goods to the destination port.
Who will do the shipping is up to the buyer.
If you have able shipping agents, you can do EXW with your supplier.
If your suppliers offer reasonable CIF prices, you can pay them to ship for you.
Below are all the shipping options.
5.1 How To Ship Melatonin Powder?
If you are considering importing melatonin powder, choose a reliable shipping method that meets regulatory transportation requirements.
Melatonin is tested and proven to be a safe and common chemical, not dangerous.
5.1.1) By Air
One option for shipping melatonin powder is by air freight.
It is a fast and efficient method of transportation, but it can be more expensive than other options. It is also subject to stricter regulations and may require special handling and packaging to ensure the shipment’s safety and security.
5.1.2) By Sea
Another option is to ship melatonin powder by sea freight, which is typically less expensive than air freight but takes longer to reach its destination.
This method suits larger shipments and can be a good choice if time is not critical.
However, it is essential to ensure that the packaging is suitable for the long journey and potential exposure to rough weather.
5.1.3) By Courier
If importing a small quantity of melatonin powder, consider using a courier service like FedEx or DHL.
These services offer fast, reliable delivery and may be the easiest option available.
It is essential to check the regulatory requirements and any restrictions on transporting melatonin powder through these services.
Regardless of your shipping method, it is essential to carefully plan and prepare your import to ensure it reaches its destination safely and complies with all relevant regulations.
It may involve working with a professional logistics company or obtaining the necessary permits and documentation.
Step Six: Customs Clearance and ship goods to your warehouses.
Once the goods are in the destination’s customs office, such as CBP in the USA, you must handle their clearance.
According to the destination country’s laws, import permits must be obtained before the goods are handed to the Customs Officials.
All imported goods are subject to inspection by Customs and, under the HS Code, to specific import tariffs.
Provide the officials with all the documents needed for clearance, pay the import taxes and handling fees, and so on. Then, your goods are ready to be released from Customs Surveillance.
Once the goods are released, you can move them into your warehouses for the next steps, and the whole import process is complete.
If there are specific steps you are unclear about, please get in touch with us or leave a comment below.
Disclaimer:
This content is for informational purposes only and is intended for business-to-business communication within the pharmaceutical industry. It is not intended as medical advice. The manufacture, import, and use of API must comply with all applicable laws and regulations in the relevant country or region.
This blog post is informational only and does not constitute medical advice.
Always consult a healthcare professional before starting any new medication or treatment.
