Avoiding tariff rates when importing ?

Discussion in 'International Business' started by Biohyt, Dec 29, 2020.

  1. Biohyt

    Biohyt UKBF Contributor Free Member

    61 0
    Hello everyone

    I have posted another topic, but I realise I opened it under wrong thread.

    As you know, tariff rates make an imported item expensive by increasing its cost. My question is:
    is: there any chance to avoid this situation ? Just think of 3 countries (A,B,C).
    I live in country A, and if I import goods from B (where goods are produced), its very expensive. Can I first find someone in country C to take the goods, and therefore I can pay vat twice (when goods move from B to C and then to A), rather than paying the tariff rate?

    On the other thread, I was suggested to use a bonded warehouse (thanks Mr D). However, I dont think bonded warehouses can affect one's necessity to pay for tariff.

    Thank you for your help
     
    Posted: Dec 29, 2020 By: Biohyt Member since: Apr 25, 2018
    #1
  2. Oscar478

    Oscar478 UKBF Newcomer Free Member

    22 3
    If country B does not impose tariffs on that category, and the UK does not impose them for that country, then it would work. You'd need to really do the maths though, how would this impact your shipping, insurance and lead times? The goods could not simply transit in country B, they would need to be imported, and you would need to worry about clearance and all the associated paperwork. The administrative burden alone would make this pretty unattractive for most people.
     
    Posted: Jan 12, 2021 By: Oscar478 Member since: Sep 6, 2017
    #2
  3. Biohyt

    Biohyt UKBF Contributor Free Member

    61 0
    @Oscar478
    Thank you for the answer. But isnt there a rule that if there's tariff or any kind of extra tax/vat applied to a particular country, then, no matter where it comes from, the extra fees are applied ? I mean isnt it the origin of the product that determines whether there'll be tariff etc charges, not where it comes from ?
    Thanks
     
    Posted: Jan 14, 2021 By: Biohyt Member since: Apr 25, 2018
    #3
  4. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,745 2,084
    It's the cost of doing business and this cost should be priced into the product or service leaving profit on top .
    If this is not possible then the job is unviable
     
    Posted: Jan 14, 2021 By: JEREMY HAWKE Member since: Mar 4, 2008
    #4