First time Importing from China as a Limited Company. I Need Help !!! Thank you

[Addyhere]

I am new here and thanks everyone for having me.
There is a company I am looking to order in bulk from. I have their sample and I’m happy with it. The shipping to the UK is a bit high but it is on DDP terms (which according to the research I did mean custom duty and tax are taken care of by seller). Supplier also confirm no other fees to pay even in UK. However, there is another 20% charge by Alibaba. I am not vat-registered but I am not sure if it means I will be paying tax twice.
I also thought probably arranging shipping myself is better or I should just go with the suppliers shipping arrangements. Just need some good advice as I’m scared of making mistakes or loosing money as it is my first bulk order from china. Still a few more things to organise like inspection.
I want to seek advise before confirming the order. Any general help will be greatly appreciated. I welcome general advice and criticism. Thanks so much
Ade

 

[Paul Kelly ICHYB]

Contact the supplier direct.
Get DDP and FOB costs.
Use a freight forwarder to get quote for shipping
Compare.

Depending on the products and order value, you might be better off using a local sourcing expert/agent, for additional peace of mind.

 

[Addyhere]

Contact the supplier direct.
Get DDP and FOB costs.
Use a freight forwarder to get quote for shipping
Compare.

Depending on the products and order value, you might be better off using a local sourcing expert/agent, for additional peace of mind.

Thanks Paul. Do you mean sourcing item from Local suppliers?If yes, I got a quote but the price was too high.
Do you know any reliable freight forwarder?
I am also concerned about paying vat or tax twice. Thank you

 

[MOIC]

Welcome to UKBF.

You'll find a lot of helpful advice on this forum, which you'll need as a first time importer.

General advice when it comes to shipping from China, get 3-6 quotes and compare costs, what's included, as well as all costs delivered to your door.

If your supplier has quoted DDP, will they be issuing you with an invoice for the taxes they have paid?

What method of shipping have they advised? This will depend on your products, weight and volume.

Feel free to send me a DM, if you need any advice or assistance.

 

[Paul Kelly ICHYB]

No! A sourcing agent in the location who will have feet on the ground and might know more/alternate suppliers e.g. @MOIC

 

[Martin Winlow]

Hi,

I'm also not-VAT registered (and 8 years in - but I'm supposed to be retired!)... I have imported direct from China at least 3 dozen times from about 10 suppliers in that time, mostly (if not all) via Alibaba. I have been pretty happy with the service and quality of goods, overall - especially considering the cost of equivalent (possibly higher quality - but not much... and often identical) goods sourced from the UK/EU. The one thing that always impresses me about buying from China is that they are prepared to bend over backwards to help make things happen. Stark contrast to so many European businesses who often simply can't be bothered.

So, all that said:
1/ You simply *cannot* be too specific in your description of the goods you order. Partly this is a cultural thing; the Chinese just have different attitude to life and 'stuff' but my feeling is that if a supplier can reasonably get away with sending you something that disappoints because the fine detail has not been agreed on, they will.
2/ If your goods involve the need for instructions, expect to have to re-do them in good, sensical English. It amazes and baffles me - in equal measure - why Chinese exporters of (especially technical) goods, do not bother to get someone who speaks good (technical) English to do their instructions. The other problem is the instructions very often leave out really useful/important info - Lord only knows why as much of the time the undocumented capabilities would be highly sought after and therefore make for a more profitable sale... it is a cosmic puzzle!
3/ Make sure you ask all the questions you could possibly want answered *before* sending the payment - the helpful, can-do attitude often evaporates once the goods have been sent.
4/ Be really wary of quoted shipping costs as if these are not really tightly buttoned-up before payment, you can often find UK-based 'handling agents' (usually based around Felixstowe, etc) getting involved and adding hundreds to the bill. I remain convinced that most of them are basically criminals and provide back-handers tp suppliers in some dark-web-like shenanigans if you have not dotted all your i's and crossed all your t's - but I am rather cynical. If Alibaba want 20% ask them what it's for!
5/ Using a UK-based shipping agent to deal with everything door to door is often well worth the extra cost.
6/ If you have not looked into how you propose sending money yet, I highly recommend Wise.com (Transferwise that was).

Good luck!

MW

 

[fisicx]

I am new here and thanks everyone for having me.
There is a company I am looking to order in bulk from. ....However, there is another 20% charge by Alibaba.

Well that would make me worried right from the start. Do as @MOIC suggested and get a number of quotes. And avoid Alibaba if at all possible. Or you might find what you receive is somewhat different to what you ordered. If it turns up at all.

Most of the people you talk to on Alibaba are agents not suppliers. You could well get a better deal form the actual supplier.

 

[Addyhere]

Welcome to UKBF.

You'll find a lot of helpful advice on this forum, which you'll need as a first time importer.

General advice when it comes to shipping from China, get 3-6 quotes and compare costs, what's included, as well as all costs delivered to your door.

If your supplier has quoted DDP, will they be issuing you with an invoice for the taxes they have paid?

What method of shipping have they advised? This will depend on your products, weight and volume.

Feel free to send me a DM, if you need any advice or assistance.

Thanks a lot MOIC. I will certainly DM.

 

[Addyhere]

No! A sourcing agent in the location who will have feet on the ground and might know more/alternate suppliers e.g. @MOIC

Ok. Well appreciated. Will do

 

[Addyhere]

Hi,

I'm also not-VAT registered (and 8 years in - but I'm supposed to be retired!)... I have imported direct from China at least 3 dozen times from about 10 suppliers in that time, mostly (if not all) via Alibaba. I have been pretty happy with the service and quality of goods, overall - especially considering the cost of equivalent (possibly higher quality - but not much... and often identical) goods sourced from the UK/EU. The one thing that always impresses me about buying from China is that they are prepared to bend over backwards to help make things happen. Stark contrast to so many European businesses who often simply can't be bothered.

So, all that said:
1/ You simply *cannot* be too specific in your description of the goods you order. Partly this is a cultural thing; the Chinese just have different attitude to life and 'stuff' but my feeling is that if a supplier can reasonably get away with sending you something that disappoints because the fine detail has not been agreed on, they will.
2/ If your goods involve the need for instructions, expect to have to re-do them in good, sensical English. It amazes and baffles me - in equal measure - why Chinese exporters of (especially technical) goods, do not bother to get someone who speaks good (technical) English to do their instructions. The other problem is the instructions very often leave out really useful/important info - Lord only knows why as much of the time the undocumented capabilities would be highly sought after and therefore make for a more profitable sale... it is a cosmic puzzle!
3/ Make sure you ask all the questions you could possibly want answered *before* sending the payment - the helpful, can-do attitude often evaporates once the goods have been sent.
4/ Be really wary of quoted shipping costs as if these are not really tightly buttoned-up before payment, you can often find UK-based 'handling agents' (usually based around Felixstowe, etc) getting involved and adding hundreds to the bill. I remain convinced that most of them are basically criminals and provide back-handers tp suppliers in some dark-web-like shenanigans if you have not dotted all your i's and crossed all your t's - but I am rather cynical. If Alibaba want 20% ask them what it's for!
5/ Using a UK-based shipping agent to deal with everything door to door is often well worth the extra cost.
6/ If you have not looked into how you propose sending money yet, I highly recommend Wise.com (Transferwise that was).

Good luck!

MW

Waoh! I’m super grateful for your great tips and advice Martins. Thank you so much

 

[Addyhere]

Well that would make me worried right from the start. Do as @MOIC suggested and get a number of quotes. And avoid Alibaba if at all possible. Or you might find what you receive is somewhat different to what you ordered. If it turns up at all.

Most of the people you talk to on Alibaba are agents not suppliers. You could well get a better deal form the actual supplier.

Very true. The 20% is a vat thing according to Alibaba. I will talk to MOIC as you guys suggested. Thanks a bunch

 

[Customs Geek]

I am new here and thanks everyone for having me.
There is a company I am looking to order in bulk from. I have their sample and I’m happy with it. The shipping to the UK is a bit high but it is on DDP terms (which according to the research I did mean custom duty and tax are taken care of by seller). Supplier also confirm no other fees to pay even in UK. However, there is another 20% charge by Alibaba. I am not vat-registered but I am not sure if it means I will be paying tax twice.
I also thought probably arranging shipping myself is better or I should just go with the suppliers shipping arrangements. Just need some good advice as I’m scared of making mistakes or loosing money as it is my first bulk order from china. Still a few more things to organise like inspection.
I want to seek advise before confirming the order. Any general help will be greatly appreciated. I welcome general advice and criticism. Thanks so much
Ade

Firstly don’t make assumptions about what is included with DDP based on what you have read online. There are many interpretations so pin down exactly what charges are included in the price. They do tend to charge more for shipping as that will include some mark up from them.
Goods from China will incur customs duty and import VAT so make sure that they will be paying that.
Alibaba do have a UK VAT registration but this is mainly used for consignments below £135.

 

[Addyhere]

Thanks a lot MOIC. I will certainly DM.

Will DM in a few hours. Thanks again

 

[Addyhere]

Firstly don’t make assumptions about what is included with DDP based on what you have read online. There are many interpretations so pin down exactly what charges are included in the price. They do tend to charge more for shipping as that will include some mark up from them.
Goods from China will incur customs duty and import VAT so make sure that they will be paying that.
Alibaba do have a UK VAT registration but this is mainly used for consignments below £135.

Exactly my thought. I find it difficult to just take their word for it and get slapped with nasty surprises down the line. Thanks, will be digging deep before placing order.

 

[Customs Geek]

4/ Be really wary of quoted shipping costs as if these are not really tightly buttoned-up before payment, you can often find UK-based 'handling agents' (usually based around Felixstowe, etc) getting involved and adding hundreds to the bill. I remain convinced that most of them are basically criminals and provide back-handers tp suppliers in some dark-web-like shenanigans if you have not dotted all your i's and crossed all your t's - but I am rather cynical. If Alibaba want 20% ask them what it's for!

Usually this occurs when the Chinese seller doesn’t sort out arrangements with the UK agents or agree to pay their charges for customs clearance The clearance agents have no choice but charge the receiver. Often the seller ‘forgets’ to include delivery from the port as well So as you say make sure you have everything pinned down before shipment.

I’m not saying that there are not dodgy firms out there but I’m less cynical about the UK side.

Remember also that non UK companies cannot import in their own name so often the recipient is named importer with legal responsibilities for any customs debt. Anyone can physically pay duties but HMRC can follow up years after the goods have been cleared.

Also the customs procedures though the sea or airports are very different to the simplified procedures the courier companies use for small packages.

 

[NickZ]

Test you connections in China.
Do they deliver as advertised?

 

[anson_kingson]

I am new here and thanks everyone for having me.
There is a company I am looking to order in bulk from. I have their sample and I’m happy with it. The shipping to the UK is a bit high but it is on DDP terms (which according to the research I did mean custom duty and tax are taken care of by seller). Supplier also confirm no other fees to pay even in UK. However, there is another 20% charge by Alibaba. I am not vat-registered but I am not sure if it means I will be paying tax twice.
I also thought probably arranging shipping myself is better or I should just go with the suppliers shipping arrangements. Just need some good advice as I’m scared of making mistakes or loosing money as it is my first bulk order from china. Still a few more things to organise like inspection.
I want to seek advise before confirming the order. Any general help will be greatly appreciated. I welcome general advice and criticism. Thanks so much
Ade

It's better to use your shipping agent,you could control goods at least but trust,that's most important.Anyway,if you need help,pls let me know,I could make inspection before shipment and take photos for you and make sure everything is real

 

[Ozzy]

I am just locking this thread as the last 11 replies are all spam, so if anyone comes to this thread with the same issue and it isn't answered above, ask a new question here.