Sub-categories do not appear after export/import

I just moved my blog from one url to another using wordpress extract and import and have a problem with the import. I have categories and subcategories in my original blog (www.journalinggems.com/blog) but in my new blog (www.wisdomwellnessandwit.com/blog) I get sub-categories and categories listed when I am doing a post and selected categories and sub-categories, BUT the sub-categories are not listed as sub-categories on the mian page of the blog only as categories. Also I cannot add a sub-category – it never appears.
What did I do wrong? How can I correct the problem?
Thanks