How to import the Optic cable production line from China to Brazil | HONGKAI

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Hussien He

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According to analysis and statistics, the demand for and imports of fiber optic cables in Brazil has been increasing linearly in the past five years, so do you know how to import fiber optic cable equipment and production lines from China, a major manufacturing country? If not, then there is nothing to worry about because we have got it all covered up for you.

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Graph showing the rise in usage of fiber optic cable in Brazil over a span of 6 years

That’s not all, folks! This guide is divided into eight sections based on different stages of importation. Click on any section that interests you for further study:

1. Should you find quality suppliers over the internet or personally visit China?

There are two ways to find the best quality fiber optic suppliers within China. One way is to find them online over the internet. The second and preferable way is to visit China personally, find the companies via exhibitions, or pay a visit to their industries.

Finding Fiber Optic Cable Companies Online:

There are three ways you can find suitable fiber optic suppliers and manufacturing companies by surfing over the internet while chilling at your home in Brazil! These are:

B2B Trade Websites:

There are multiple B2B trading platforms where you can meet the best and most skilled and experienced fiber optic companies. Ali Express is suitable for you if your order lies below $100.

However, you should consider DHgate if your order ranges from $100-$1000. Furthermore, if you have a high-priced order to place (like fiber optic cables), then Alibaba is your go-to place.

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Google:

Google is the best place to search for a product you wish to import. Just type in “Best Fiber Optic Cable Suppliers in China,” and you shall see a list of multiple manufacturers and suppliers. Please choose the best and reliable one among them. This article shall also guide you about the criteria to find the best and reliable fiber optic supplying companies.

SNS:

There are multiple platforms like Facebook and LinkedIn, where there is a possibility to find a suitable fiber optic supplying company. However, most companies aren’t active on such platforms, and you may not see many details about the cables there. The search method on these platforms is the same as that for Google.

Offline Channels:

Some people may be hesitant to spend a huge number of bucks importing fiber optic cables just by finding the companies online. There are alternate ways to find some of the best fiber optic manufacturers in China. However, you would need to pay a personal visit to China for this.

Exhibitions and trade fairs:

There are multiple types of trade fairs and exhibitions every year in China. Representatives of different companies are present at these fairs to advertise their products.

Here are all the more famous exhibitions in China:

  1. CIOE
  2. LPC
  3. LEAP
  4. PCE
  5. COOE

Visiting industrial clusters:

When different companies deal in a specific product, they form a cluster. You can find fiber optic clusters located in China from the B2B platforms mentioned above, and then their contact and address details can be extracted from these platforms. You may pay a visit accordingly.

These offline methods may be time-consuming, yet the recommended way is to touch and analyze the fiber optic cable physically. This can also help you find a reliable partner for long-term business.

List of top 8 fiber optic cable suppliers in China:

These are the eight top-rated and experienced fiber optic supplier companies in China:

1. YOFC

2. Fiber Home

3. ZTT

4. TONGDING

5. SDGI

6. Weiye

7. CETC

8. HongKai

YOFC:

Yangtze Optical Fiber and Cable Joint Stock Limited Company (YOFC) was established in 1988, Wuhan. In 30 years, YOFC has become the leading fiber optic supplier, manufacturer, and solution provider in China and worldwide. The company has clients in 70+ countries, along with a huge 4000+ employee count. That’s not all; YOFC owns 40+ subsidiary companies, which makes it a vast entity.

2. Fiber Home:

Fiber home,  originally known as “Wuhan Research Institute of Posts and Telecommunications (WRI).” was established in 1974. Since its establishment, the company has been producing and providing innovative, improved, and efficient communications systems products and solutions that include fiber optic communications, data networking, and wireless communication. The sales and service systems of the company have been developed in more than 50 countries.

3. ZTT:

ZTT is a multi-national company that was established in 2002. The company generated record revenue of $8.89 billion in 2019, which speaks for its performance. ZTT products are shipped to 147 countries and have a huge employee count of 16000+.  ZTT started as a fiber optic cable manufacturing company but now has spread its wings to telecom, power, and renewable energy fields.

4. TONGDING:

Tong Ding has emerged as the leading company in the field of Optoelectronic cable manufacturing. TD has managed to capture clients worldwide; thanks to the innovative technologies it came up with over the years. Through quality and innovative products and services, TD has emerged as a reliable and successful company.

5. SDGI:

Founded in 1988, SDGI is among the earliest fiber optic fabrication enterprises in China. Since its establishment, the company has been devoted to the R&D of fiber optic cable, intelligent networks, and military technologies. Thanks to service and sales teams in over 40 countries, SDGI is among the top fiber optic manufacturing companies in China.

6. Weiye:

Shanghai Weiye was established in 1988 and specializes in the research and development of fiber optic machinery. The list includes Fiber coloring machines, secondary coating line, SZ stranding line, sheathing line, etc. The company claims to generate a considerable revenue of $30 million annually. The manufacturing plant spreads over a large area and alone has 100 employees, including a talented and experienced team of engineers and technicians.

7. CETC:

China’s optical cable technology is the Eighth Research Institute of China Electronics Technology Group Corporation, also known as the Eight Institute. Since 1970, the Eight Institute is a stranger to transmissions by no means, having engaged in the microwave and unique transmission line research. The company has revolutionized the fiber optic industry through “flame-retardant optical cable” and “optical fiber composite ground wire.”

The institute specializes in the development and production of optical fiber and cable-related equipment.

8. HongKai:

Being the newest yet emerging in fiber optic manufacturing, Hong Kai has a spot in the top 8 fiber optic manufacturers In China. Because of their telecommunication network’s quality production, fiber optic cables, and other cables, the company is already giving a tough time to its competitors.

Being established in 2005, Hong Kai  is quite experienced and familiar with fiber optic cable manufacturing, thanks to its strong relations with other countries and professional staff.

2. Evaluation of different suppliers to determine which one is worth a long-term relationship:

Although there are multiple fiber optic manufacturers and suppliers in China but, selecting the right one is crucial for a successful business. Here are a few aspects you should consider to choose a reliable long-term supplier:

Business History:

It is essential to consider the business history of the companies before making any deals. It is comparatively easier to register a company in China; however, a particular company should have at least three years of experience in developing and supplying the same product category (fiber optic line in this case).

Export Countries:

Another essential point to be considered is to analyze the countries to which the company exports its products. Let’s say you want to import fiber optic cable to Brazil, but the company only focuses on developed countries like the USA. Although the product will be of a very fine quality, its price would soar and would not suit the Brazilian market or customers.

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Delivery time:

Delivery time plays a vital role in your business. If the supplier is unable to deliver the fiber optic cable on time, it will affect your goodwill with the clients and your sales. If you are a seller on a B2B website, you need to have a stock that is ready for delivery whenever needed. If not, this will affect your product’s ranking in the marketplace, and you would need to market your product again.

Quality Control:

A good product will always keep you on top among your competitors and vice versa. So, it is advised to ensure that a company’s fiber optic cable should offer less attenuation and losses. Some companies have a complete quality control system to ensure that you get only the best!

3. Common Transaction Methods:

In the negotiation process with suppliers, you will encounter the phrase, ‘Incoterms.’ These incoterms are of multiple types, which influence the cost accordingly.

What are Incoterms?

  • Incoterms state which person/company would pay the freight in different cargo delivery steps in trade terms and conditions.
  • Furthermore, it states which party would take responsibility for the cargo in different cargo delivery steps between the buyer and the seller.
  • This is done so that the buyer and seller build a mutual and friendly relationship with each other
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Following are the commonly used Incoterms:

1. EXW (Ex-Works):

  • In EXW, sellers pass the cargo to the buyer at an exporting place.
  • Importers make all the payments, such as transportation fees, from the factory to different delivery places.
  • The cargo responsibility is shifted from the seller to the buyer as soon as the seller loads it into the container

In short, EXW is the most straightforward trade condition for the seller.

2. FOB (Free onboard):

  • FOB is another term and condition according to which the responsibility of the cargo is shifted from the seller to the buyer after the shipments are board on the exporter’s side
  • The seller would pay the transportation fee at the exporting side
  • However, buyers would be paying the ocean freight and the delivery fee on the importing side.

3. CFR:

According to CFR, the seller would be paying the freight cost from the factory at the exporting side to the port at the importer’s side.

4. CIF (Cost Insurance and Freight):

  • The seller has to deliver the goods to the board. Furthermore, the seller shall cover the insurance and freight for the shipment.
  • However, the buyer would be responsible for all the damage to the shipment.

Cargo Insurance:

It is always good to have cargo insurance. In case of some damage to the cargo ship, the insurance company can help pay for the damage.

Payment Methods:

TT/LC/DP are three payment terms that are considered and agreed upon while establishing the contract between the buyer and seller. These terms shall be discussed below:

1. TT (Telegraphic Transfer):

  • TT means a telegraphic transfer, telex transfer, or wire transfer
  • TT uses electronic means to transfer payments from one bank account to another
  • The whole world follows this payment method
  • It is the quickest way for payment transfer

2.LC (Letter of Credit):

  • Letter of credit is an instruction from the buyer to a foreign bank to pay the seller a sum of money.
  • The money is paid only when certain conditions are met
  • LC applies specific rules and regulations

3. DP:

  • DP is a payment term regarding imports and exports and stands for ‘Documents against payments’
  • DP is related to the acceptance of shipping documents about each consignment from the buyer’s bank
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4. Comparison of the suppliers and criteria for choosing the best supplier for importing from China:

Don’t pay too much attention to low price:

Although price is an important aspect to be considered while making a business deal, however, it should not be the ‘only’ point to be focused on. A company may be producing a fiber optic cable that has a lower price, however, if another company can deliver a better-quality cable and demands just a little higher cost than the first company, then it is always preferable to go for the latter one. Remember to always choose quality over price!

Evaluate the quality of the equipment

Regardless of the supplier’s business background, how good the offer is, or how good the quality of the product they promise; an actual inspection is the best channel to check the quality of their products. However, due to the current epidemic situation, you can also ask if they have a sales team in your country, and then conduct a field equipment production inspection, keeping the following points in mind:

  1. Consider the quality and possible after-sales issues
  2. The cable processing parts should be highly accurate
  3. The sink being used for manufacturing should be stainless
  4. The operation should neither be too humane nor too easy
  5. The production speed should be adequate
  6. The manufacturing equipment should be maintained regularly.

Good communication:

 Another important factor that should be considered while comparing different manufacturers is whether they have the ability to build up a good communication with you. An experienced, professional and reliable manufacturer will always know about your requirements, share the experience of their past clients, gives suggestions and discusses technical aspects for different fiber cable lines.

Compare delivery time:

Delivery time plays a vital role in your business. If the supplier is unable to deliver the fiber optic cable on time, it will affect your goodwill with the clients. The delivery time depends upon the manufacturer’s production capacity and production schedule. If there are multiple suppliers who offer the same price for the production line, then it’s always better to opt for the one that has the shortest delivery time.


Transportation solutions/transportation costs:

In case you are not in contact with a freight forwarder and you want the supplier to take care of the logistics, then you need to consider the logistics cost as well. Some suppliers offer a minimum price for the cable, but demand a huge amount of dollars for logistics. Furthermore, if a supplier is inexperienced with shipping, then freight forwarders may charge him a huge amount for the process, which will add to your cost as well. Therefore, the logistics cost should also be considered with the production cost while making a comparison among different suppliers.

5.Confirmation and finalizing all details with suppliers:

After you have decided to opt for a particular fiber optic cable manufacturing company, the next step is to look into specific vital details. The following are a few confirmations you need to make with the supplier:

Selection of the perfect production line:

This is obvious that you would only need the best fiber optic line for your business. So, the following points must be finalized with the supplier:

  • Configuration:

Different fiber optic lines have different configurations. It would be best to determine the production line configuration from the supplier based on the final fiber optic cable product.

  • Production speed:

Another thing that you need to finalize with the supplier is whether the supplier’s production speed is fast enough and whether it can meet your delivery date.

  • Cable color and direction:

 Fiber optic lines come in different colors like green, orange, blue. The cable color also needs to be finalized with the supplier before making the final deal. Furthermore, it should also be inspected that whether the cable is unidirectional or bi-directional.

Final Price and contract:

A lot of disputes usually arise between buyers and suppliers over price. Therefore, it is better to finalize the final price before placing the last order. Disputes usually arise because the cost of electrical brands, raw materials, packaging and other equipment costs is not added up into the final cost before making a deal with the buyer.

Another important point to be considered and finalized with the supplier is that the quality of the optic fiber cable production line should remain consistently good even after the contract has been signed. The manufacturing company should also give a guarantee time for the cable. This guarantee ensures that the cable delivered would have constant crisp quality over a span of many years to come.

Payment Methods:

  • The most commonly used payment methods (TT, LC, DP) have been explained above under the ‘payment methods’ heading.  It is recommended to determine the payment method with the supplier before signing the final deal.
  • Chinese suppliers usually use such payment conditions:
  • 30% deposit before manufacturing and 70% balance before shipping from China.
  •  In most cases, Chinese suppliers only accept payment in US dollars.
  •  The most used payment method is wire transfer (T/T).
  • You can log in to your online bank or visit an offline bank to complete your payme

 Delivery time:

Adequate inventory is critical for any business. It seems to be important for your end sales that the supplier should be able to finish the production before the agreed delivery time. Most Chinese suppliers do not prepare inventory and produce brand new products after they receive your order. Generally, most take 35-50 days to complete the goods.  The goods should be packed in the way as mentioned in the heading below.

Packing of goods:

Fiber optic cable are very sensitive. So, fiber optic cable rolls should be well packed to avoid any breakage during the delivery or shipping process. This can be done by following steps:

  • Assess the fiber optic cable’s requirements and select the correct packing materials
  • Wrap all the fiber optic cable rolls separately
  • The packaging should be well-cushioned and filled. However, no empty spaces should be left. There shouldn’t be any overstuffing as well.
  • Use the right sealing material

6. Inspection of the goods:

It is essential to inspect that the fiber optic cable lines being imported are not defective, as it can affect your business and customer relations. Therefore, an acceptance criterion should be set by you before you can bring in any shipment. The criteria should contain the following critical points:

  • Production speed:

The speed of the production line should be the same as the speed described in the contract. The delivery should also be fast.

  • Data carrying capacity of the cable:

Before approving the inspection process, you should ask the supplier to take fiber core for a trial run and use OTDR (test equipment) to critically check the variation of fiber optic cable data. IEC can be used a testing standard for this cause.

Another point to be added in the inspection criterion is that the fiber optic cable should be highly stable. It should have a low bending loss and should be able to perform well regardless of the harsh environmental conditions.

  • Production Line Stability:

A qualified production line should maintain its stability even outside the diameter. The cable should also be able to perform well when subjected to acceleration/deceleration.

Due to the current Covid situation, you can also contact a third party in China and hire them to inspect the fiber optic production for you according to the criterion mentioned above.

7. Transportation:

There are two main transportation/shipping methods; ocean freight and air freight. The details and a brief comparison of the two is as follows:

Airfreight:

  • Airfreight is recommended if the shipping cost is less than 15-20% of the good’s value. A weight calculator can be used to determine whether the goods will be charged by the actual or the dimensional weight.
  • Although air freight is a faster and safer way yet, it is also costly. For example, a $195 shipment by the ocean can cost you about $1000 if done by air. Learn more about air freight costs here.
  • It takes about eight days for the shipment to reach from China to Brazil in case of air freight

Ocean freight:

  • Ocean freight offers a larger capacity when compared to air freight and can transport a more significant amount of goods.
  • Although ocean freight is cheaper yet, it is much slower than air. Furthermore, customs costs can also add up to the final budget of the shipment.
  • It can take about four to seven weeks for the shipment to reach from China to Brazil in case of ocean freight

8. Customs Clearance:

The goods need to be from the customs before they get loaded on a ship. Cargo clearance involves preparing and submitting documents required to make the exports or imports into the country possible.

What is a customs clearance company?

  • Customs clearance is the process of getting approval from the customs authority to export or import goods to or from a country
  • Another definition of customs clearance is a document issued by the customs authority, which indicates the shipper’s payment of all duties. A customs clearance company or an agent helps in this step
  • The customs clearance company helps in the clearance of the customs process on your behalf.
  • Another point is that the customs company must be registered and has expertise or experience in the clearance of the specific products you are importing or exporting.
  • One can find the registered customs clearance companies on a website that has been issued and verified by the government.

The importance of a good customs clearance company:

It is always better to contact a good, skilled and experienced company for customs clearance, as this can give you the following advantages:

  • A good custom clearance company can save your cost on duties significantly. Professional companies have all the knowledge about the complete process and expenses so that a good company can save you some bucks for sure!
  • An experienced clearance company saves you from fraud.
  • A good customs clearance company can also guide you about the labeling, marking, and packaging of the product to minimize the cost
Shipping way

What documents need to be provided for customs clearance?

 Customs clearance requires the following documents:

Shipping Bill:

  • To obtains clearance from the customs department, the exporter needs to prepare the shipping bill.
  • The shipping bill is the requirement of the customs office before exporting any goods
  • The shipping bill contains details of the goods being exported, the vessel’s name, the port name at which these goods shall be discharged, the final destination’s country (Brazil in this case), the exporter’s name and address, etc.
  • Usually, five copies of the shipping bill, along with the following other documents, are submitted to the Customs Appraiser at the customs office:

1. Export Contract

2. Letter of Credit

3. Commercial Invoice

4.  Certificate of origin

5. Certificate of inspection

6. Marine Insurance Policy

  • After submitting the documents mentioned above, the desired port superintendent is contacted to obtain the carting order.

What is a carting order?

  • Carting order is an instruction to the staff at the port’s gate to allow cargo entry inside the dock.
  • After the carting order, the cargo is moved into the port and then into an appropriate shed.

Charges in the process of customs clearance:

Multiple charges need to be paid during the entire process of customs clearance. A good customs clearance agent or company can help you in paying these charges. The costs are:

  • Transport cost
  • Fumigation
  • Ocean Freight
  • Document shipping
  • Weboc charges
  • Wharfage
  • ANF charges
  • Pallet cost
  • Labor
  • Lading bill
  • Lolo charges
  • Release order charges
  • Custom clearance charges
  • Certificate of origin charges

Ending Remarks:

This article is a complete guide for importing fiber optic cable production lines from China to Brazil. The introduction to some of the most famous verified Chinese fiber optic cable production and supplier companies have been discussed in detail. Specific important payment terms and conditions and different types of documents required for cargo clearance are also explained in the above post. The importance of a good cargo clearance company or an agent has also been highlighted to assist you in the best possible way!

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