Connect & Solve
Trade Q&A
It's very difficult to do foreign trade in plastic raw materials
Resolved
SERVICE
TRACKING NO. 20260309 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
Trade Challenges?
No import/export license, customs delays,
or complex compliance issues.
or complex compliance issues.
Our Solution
One-stop full-chain agency: ensure efficient
clearance and fund security.
clearance and fund security.
Cost OptimizationUrgent ClearanceGlobal ResourcesCompliant Rebates
Our company specializes in exporting plastic raw materials such as PP and PE, but we always find it harder to operate compared to other products. The customs inspection rate is particularly high, logistics losses are significant, clients demand lower prices, and we're constantly worried about payment risks. I'd like to ask the experts: What exactly makes this industry so challenging? Are there any solutions to overcome these difficulties?
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
The customs supervision of plastic raw materials is indeed stricter than that of ordinary consumer goods，with the main risks concentrated in three aspects. First，the HS code declaration must be precise down to specific product names and grades，such as PP pellets with the HS code 3902100090. If it is declared generically as "plastic raw materials"，it will almost certainly be inspected. Second，environmental compliance is a major concern. For exports to the EU，REACH SVHC test reports are required，and food-contact materials must have FDA or LFGB certifications. Failure to provide these documents will result in direct return of the shipment. Third，the risk of anti-dumping is extremely high. The United States，India，and Brazil impose high anti-dumping duties on specific plastic raw materials. Before shipment，it is necessary to check the latest rulings on the Trade Remedy Network of the Ministry of Commerce. Recommendations。
1. Clearly stipulate the HS code and regulatory requirements in the contract。
2. Prepare third-party testing reports in advance。
3. Purchase export credit insurance for sensitive destination countries.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The core challenge of plastic raw material logistics lies in balancing the characteristics of the goods with transportation costs. Bulk shipments are cheaper in freight charges, but they involve high customs clearance and unloading fees at the destination port, and are prone to moisture and clumping. Using 25kg woven bags in containers is the most reliable option, but the space utilization rate is only around 65%. My recommendation is: For customers with monthly shipment volumes exceeding 100 tons, directly use 20-foot containers to load jumbo bags (750kg/bag), which not only prevents moisture but also facilitates mechanized loading and unloading. When selecting Incoterms, prioritize CIF to maintain control over freight forwarders and avoid clients designating agents who charge exorbitant THC and DOC fees at the destination port. Additionally, it is essential to specify the "MOISTURE-FREE" clause on the bill of lading and purchase all-risk insurance plus moisture and heat damage coverage. Otherwise, temperature differences within containers on Southeast Asian routes can reach 30℃, leading to clumping and losses exceeding 5%.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The "difficulty" of foreign trade in plastic raw materials largely stems from high market transparency and severe homogenization. Customers can easily receive quotes from over a dozen suppliers with just one inquiry, leaving profit margins extremely slim. The key to breaking this deadlock lies in upgrading from "selling raw materials" to "selling solutions." During negotiations, don't rush to quote prices immediately. Instead, first clarify the customer's processing techniques and end products - whether they're engaged in blow molding or injection molding, and whether they need UV resistance or flame retardant modifications. Then explain: "Our batch of PP melt index is 12, which perfectly matches your high-speed injection molding machine and can help you increase production capacity by 7%." This shifts the focus from price comparison to value alignment. For payment terms, insist on a 30% down payment and 70% upon receipt of the bill of lading copy for new clients, but offer a concessionary chip by saying, "We're currently applying for a Sinosure credit line. If approved, we can discuss L/C in the future." Remember, plastic raw material customers prioritize stable supply. A commitment to "no supply disruptions in the past three years" carries far more weight than a 5% price reduction.