Advice needed with importing

[ian2020_uk]

Hello, I'm looking for some advice...

I've never imported any goods before. I'm based in the UK and have been in talks with a company in Taiwan which I found on Alibaba. The company is a 'Gold Supplier' on the site. So the first question is.. is this a good sign that the company can be trusted or should I not really consider it as meaning much?

They have agreed to send a sample of the product I am interested in, which they are sending this week. I will be paying for the shipping via paypal.

The main problem I have it my general lack of knowledge about importing goods from anywhere.

I've done some research, I know the duty on the product is 5% + obviosuly the 20% VAT.

The price quoted by the company is 'CIF' price for 1 x 20ft container which is the minimum order quantity. The cost in EURO's before duty & VAT is £61,000. Am I right in thinking 'CIF' means that insurance & shipping are included? Would I need to take out extra insurance? Also is this just shipping to a UK port? Would I need to cover the cost from the UK port to my UK address?

Would it be wise for me to look at an agent in Taiwan to help with the deal?

If the CIF price does not include delivery to my UK address, roughly what cost would I be looking at for this and what's the best way to find a company to handle it?

Thanks in advance for any help, I need it!

 

[Chinadavid18]

My advice is is that you visit the company in Taiwan as well as perform a credit check on the company. Also see if you can find anyone else on the Internet who is doing business with this company.

Also, you need to concentrate on quality issues as well as how are you going to pay the company? you need to think about your investment having some protection. L/C Contract, deposits rather than upfront payment etc..... the last thing you want to do is pay all the money and then encounter problems after the money has left your bank account.

You do not need to rush in. Make a few smaller orders from the company first. maybe keep it to under 2000 pounds or less until you build up trust in the company. This way you can minimise the risk whilst giving yourself the opportunity to build up a relationship with the company. It also means you can solve any problems you might have with importing into the UK without dealing with large sums of money Get experience first before you invest a large sum of money.

Or Course you might not be able to visit the company in Taiwan but try to do as much research as possible as well as try to minimise the risks while you build up that most important asset 'Trust'.

 

[robin898]

I think it would be better to try small orders with new suppliers for low-risk, especially you are a freshman. Good luck!

 

[BLintl.]

First you need to check your supplier. As the amount you are going to pay is relatively large you must be sure that you are dealing with a trustworthy firm. A complete company check should be performed and we can help with it.

The fact that the supplier is a "golden member" does not mean that everything is OK with the company and you can trust them.

It is good to have a sample. But remember that the goods you receive might be worse than the sample.

In your situation we would advise you to demand an independent pre-shipment inspection of your cargo. Some inspection companies you will find on our website.

If you can manage a letter of credit it will be safer compared to a bank transfer. Do not forget that in case you receive bad quality goods or receive nothing or the supplier vanishes with your money it will be very costly to recover your money.

Ask the supplier if they can provide an Advance payment guarantee. It will be a safe solution for you. You can see a sample on our website and the description how it works.

The import duty and VAT should be no problem to calculate just ask the local customs.

CIF means "cost, insurance, freight" to your port - UK port. You should add port handling charges, unloading, paperwork costs etc to obtain the final price. Then you add the duty and VAT.

An extra insurance will always help. The price should not be extremely high but you will have a peace of mind.

In the long run an agent in Taiwan will help a lot. You just need to find a good and reliable one. Still it is possible to manage without an agent and perform company's audit, always ask for a pre-shipment inspection, use L/Cs, bank guarantees and Advance payment Guarantees.

We provide anti-fraud consulting services for companies involved in international trade. I assume it will be interesting for you to visit our site: www.black-lists.com and see what we offer.

 

[ian2020_uk]

Hey, thanks very much for your help!

 

[Frankus]

Hello, I'm looking for some advice...

I've never imported any goods before. I'm based in the UK and have been in talks with a company in Taiwan which I found on Alibaba. The company is a 'Gold Supplier' on the site. So the first question is.. is this a good sign that the company can be trusted or should I not really consider it as meaning much? Websites like Alibaba aim to assist by attempting to minimise your exposure to risk. However, as stated above, I would certainly start with the sample - thouroughly test it, give it to someone else to test and evaluate it for you. Then, when you're happy, start with small orders. All the checking in the world won't necessarily allay your fears. Only real experience will do that, as much as it is possoble.

They have agreed to send a sample of the product I am interested in, which they are sending this week. I will be paying for the shipping via paypal.

The main problem I have it my general lack of knowledge about importing goods from anywhere.

I've done some research, I know the duty on the product is 5% + obviosuly the 20% VAT.

The price quoted by the company is 'CIF' price for 1 x 20ft container which is the minimum order quantity. The cost in EURO's before duty & VAT is £61,000. Am I right in thinking 'CIF' means that insurance & shipping are included? Would I need to take out extra insurance? Also is this just shipping to a UK port? Would I need to cover the cost from the UK port to my UK address? Pretty much right so far. Carriage (to outgoing port), Insurance and Freight. This is indeed to the destination UK port. You then have port charges to contend with, then onward delivery costs to your depot.

Would it be wise for me to look at an agent in Taiwan to help with the deal? If dealing CIF, I wouldn't bother. Once you've dealt on a small order basis for a while and built up a relationship with your supplier, best to deal with him/his company. If they are established, they will have their own export staff or agent. Once you get this far, trust is established.

If the CIF price does not include delivery to my UK address, roughly what cost would I be looking at for this and what's the best way to find a company to handle it? At a guess, I would say it might cost somewhere in the region of £500. Google (or Bing) 'Haulage from...' then your entry port of choice. You'll find a list there.

Thanks in advance for any help, I need it!

Best of luck.

 

[RouterBits]

And also, if you have some friends in China, they could also help you check all information in their place, even calll or go to see the factory directly.
This will be the best and safest way.

 

[BLintl.]

This is true only IF you have friends in China. Reliable person as well as a reliable supplier takes time to find. But nothing is impossible. An independent inspector will work fine for the first deals.

 

[RouterBits]

Yes, reliable person is not easy to find.
But if the person accept your work, and get your money, they should be responsible for you.

For reliable supplier, yes, takes time to find too. Sometimes, only if after real try, then you could know if it is reliable or just a fraud.

 

[ian2020_uk]

Hey, thanks I'll check it out.

Thanks for the replies

 

[kennyservice]

in Alibaba "gold member" means nothings, there are once a lot of scammers from "gold members".

It is better to use an agent there, you can benefit from getting local average price, maybe send agent to have on-site audit, inspect goods and arrange shipment, the agent can save you some money on unit price and shipment, maybe cost a little more for the service fee, you are a newbie in importing, you do need an agent to help you. it is not worth to take such a risk that you never importing.

Good luck!

 

[Javier_Alibaba]

Hello, I'm looking for some advice...

I've never imported any goods before. I'm based in the UK and have been in talks with a company in Taiwan which I found on Alibaba. The company is a 'Gold Supplier' on the site. So the first question is.. is this a good sign that the company can be trusted or should I not really consider it as meaning much?

They have agreed to send a sample of the product I am interested in, which they are sending this week. I will be paying for the shipping via paypal.

The main problem I have it my general lack of knowledge about importing goods from anywhere.

I've done some research, I know the duty on the product is 5% + obviosuly the 20% VAT.

The price quoted by the company is 'CIF' price for 1 x 20ft container which is the minimum order quantity. The cost in EURO's before duty & VAT is £61,000. Am I right in thinking 'CIF' means that insurance & shipping are included? Would I need to take out extra insurance? Also is this just shipping to a UK port? Would I need to cover the cost from the UK port to my UK address?

Would it be wise for me to look at an agent in Taiwan to help with the deal?

If the CIF price does not include delivery to my UK address, roughly what cost would I be looking at for this and what's the best way to find a company to handle it?

Thanks in advance for any help, I need it!

Hi ian2020_uk,

It is Javier from the Alibaba team. To the posts made by other users, I would like to add that we have a section on our website to help resolve questions like this: the Alibaba Resource centre: (please find it clicking on "Community" on our alibaba.com website as I cannot share links as I just registered) In that section, you can find a category specific to "Safe Trading"

We hope this information is useful and we would like to thank other forum members for helping out with Alibaba.com questions.

Kind regards,

Javier
The Alibaba Team

 

[taywoo]

which company? I am based in China.I can help you verify them.

 

[Michael Palmer]

For great advice on all aspects of shipping suggest you phone Dooley Rumble, International Freight specialists, and ask for Andy (or Helen Duggan) who will give you free accurate advice.Tell Andy or Helen that Michael Palmer gave you the phone number, 01473 835100.
Alternatively, Google Dooley Rumble and you'll get their website.

 

[BLintl.]

On our website you can find useful information how to avoid fraud when dealing with a foreign supplier or buyer.

 

[Clement]

Golden supplier...that means they paid Alibaba for ad,as you can see there are Golden supplier 1 year,2 years etc etc.
A trail order first for testing quality/serves even after serves would be a good chioce.Or visit your suppliers directly.

 

[Paul Kelly ICHYB]

ian2020,

well done for taking the step to direct sourcing.

Here are some pointers:
- your sample may not relect the quality of the final delivered goods
- do the goods need EU/UK approval -CE, RoHS etc. If they do, how are you managing that?
- £61k is a lot to invest blindly. Whilst Alibaba Gold Suppliers are better than average, they are still prone to the same issues that any business can have
- Purchase using a well structured letter of credit. This should at least mean you will not part with money until the goods are on the boat or in the UK
- Purchasing of products in Euros is very unusual, however, if the item contains high value content from Europe (e.g. some form of technology) it is possible
- CIF is delivered to UK port, however
-- double check this - most companies will supply C&F i.e. no insurance
-- get an FOB quote and then speak to a few logistics companies/freight forwarders
- Duty is calculated on the UK landed price i.e. CIF
- VAT is calculated on landed + duty
- VAT & Duty is normally payable on clearance - make sure you have £16k to hand
- you will also need to pay UK clearance costs +/- £1k and delivery
- If you can, spend £1k and visit the supplier, ideally during your production. You can build a better relationship, see your items come off the line and have an opportunity to visit competitors - you will make that back in a quick time!
- If you can't, find a local agent or inspection company to do some checks on the business, do a factory audit and/or final inspection

However, the best solution is to get someone involved who has experience in direct sourcing, importing & logistics. Again, a few hundred spent now, could save thousands later on.

My final bit of wisdom, which is my opening gambit with all new clients starting a business or direct sourcing is:
Never invest more than you are prepared to lose!

 

[melissa_wi]

Hi there,

If you are looking for suppliers in the China, I could provide you advice on it.

Furthermore, I am a shipment specialist specialised in dealing mainly with EU companies which import cargoes from China. Cost effective services will be provided which include custom clearance at a reasonable price.

For more information, please do not hesitate to contact me.

Best regards,
Melissa
Shipment Specialist
Email: melissa_transshipment at yahoo dot co dot uk
MSN: melissa_wi02 at hotmail dot co dot uk
Skype: melissa.wi02
Cell (UK): +44 7588 740 848

 

[ian2020_uk]

Hey, thanks for all the replies people.

I have decided it may well be better and a lot easier to use a UK based sourcing company to place my first order from Taiwan through. The price they have quoted is DDP (Delivered, duty paid), so I would just have the VAT left to pay on top, The price quoted by one of the sourcing compaines I have been in contact with is only very very slightly higher than buying direct, and it seems to remove a lot of headaches. Has anyone had any issues or are there certain things I should look out for when using a sourcing company?

It would be nice to cut out the middle men and work direct with the factory, there are only 3 factories on the planet making the product I am after. I know the name of the company and address of the factory in Taiwan. They are based in the Central Taiwan Science Park in Yunlin. I've been unable to get a reply direct from them however, so if there are any agents based in that area of Taiwan who may be interested in helping me source direct from the factory I'd be interested to hear from them.

Thanks everyone

 

[BLintl.]

Hey, thanks for all the replies people.

I have decided it may well be better and a lot easier to use a UK based sourcing company to place my first order from Taiwan through. The price they have quoted is DDP (Delivered, duty paid), so I would just have the VAT left to pay on top, The price quoted by one of the sourcing compaines I have been in contact with is only very very slightly higher than buying direct, and it seems to remove a lot of headaches. Has anyone had any issues or are there certain things I should look out for when using a sourcing company?

It would be nice to cut out the middle men and work direct with the factory, there are only 3 factories on the planet making the product I am after. I know the name of the company and address of the factory in Taiwan. They are based in the Central Taiwan Science Park in Yunlin. I've been unable to get a reply direct from them however, so if there are any agents based in that area of Taiwan who may be interested in helping me source direct from the factory I'd be interested to hear from them.

Thanks everyone

Make sure that the UK sourcing company is financially sound and has money to compensate you any possible loss. It is a good idea to use either a L/C or a bank guarantee. You can also ask for an Advance payment guarantee from the sourcing company.

As it is your first deal insist on a pre-shipment inspection in Taiwan.

If you want to purchase this product on a constant basis it will be a good idea to travel to Taiwan and meet all three producers (if all of them are in the same country) in person. You will see these companies, their production, meet the management etc. If you can spend 61.000 GBP on the first shipment it is worth spending a bit extra and meet your supplier.