China shipment direct to my door

[n_s_simpson]

Hi All, I am really struggling dealing with a factory in China. Really hoping someone on here can help...

To begin with they sent me a few items via air freight, which was very expensive. TNT paid the import VAT, billed me and I was able to claim that back. Job done!

I am trying to buy a bulk load and have them sent by boat. They keep offering CIF where I have to organise clearance and transport from the UK port or DDP where the goods arrive with me but I can't claim back the import VAT because they pay it.

Isn't there a way for them to ship by boat and still have a road courier clear it through customs, send the goods to me and give me an invoice for the import VAT for me to pay and reclaim?

 

[OMGVape]

What’s different with them paying the vat or you then reclaiming? The vat man still gets paid and you get goods at 0% vat.

 

[MOIC]

If you want to claim back the VAT, then accept their CIF terms.

If you don't want to claim the VAT back, then go with their DDP terms.

Their all inclusive price for DDP will be much cheaper for you.

 

[n_s_simpson]

I obviously want to reclaim VAT. But I also want them to ship the goods to my door.

 

[MOIC]

You can’t have your cake and eat it if you want your supplier to arrange the shipment to your door.

Your options are to go for CIF via your supplier, or arrange your own shipping with a UK forwarder, but expect to pay more.

 

[n_s_simpson]

When they've shipped via air they have managed to get it to my door without paying the import tax (TNT paid it but sent me an invoice that allows me to reclaim).

Why is boat any different?

 

[MOIC]

Because a courier is not handling it.

 

[Solve My Problem]

When they've shipped via air they have managed to get it to my door without paying the import tax (TNT paid it but sent me an invoice that allows me to reclaim).

Why is boat any different?

A courier like TNT/UPS/DHL are providing the whole service, door to door.

Freight shipments are not handled the same, contact a freight company in the UK to handle this for you and they will organise the whole shipment + paperwork but unless you are bringing in a container it's unlikely to be cost effective.

 

[n_s_simpson]

Oh, so TNT from China to UK can only go via air, not boat?

 

[MOIC]

When shipping goods from China to UK, the process is completely different when sending by air or sea, especially the Customs clearance at both ends.

What’s the weight, volume and value of the shipment? What’s the product you’re shipping?

What are your agreed incoterms with your supplier, CIF?

 

[n_s_simpson]

Packing list:
A:55kgs/unit,630*630*670mm/unit，total 4 units，220kgs，1.06CBM
B:60kgs/unit,980*420*755mm/unit，total 1 unit，60kgs,0.3CBM
C:75kgs/unit,1081*480*781mm/unit，total 2 units ，150kgs,0.41CBM
D:100kgs/unit,1200*581*905mm/unit,total 5 units ，500kgs,3.2CBM
E:270kgs/unit,985*964*1060mm/unit，total 1 unit，270kgs,1CBM
TOTAL:6CBM，1200kgs

They are swimming pool heat pumps.

Incoterms haven't been discussed.

 

[MOIC]

Given the above do the following:

Option 1: Get a quote from your supplier for CIF terms to Felixstowe/Southampton. Then get quotes from a UK forwarder from port to your door, including all clearance charges. You pay the taxes

Option 2: Get quotes from a UK forwarder to arrange the shipment door2door. You pay the taxes.

Option 3: Get a quote from your supplier, door2door delivered duty paid.

Compare all 3 then decide which is best for you.

Incoterms should be advised/included when you receive the Pro forma, as this affects the price they quote.

 

[n_s_simpson]

Sounds expensive. Any idea?

 

[japancool]

Contact a UK freight forwarder and get a quote.

 

[n_s_simpson]

Any recommendations?

Also, do shipments of this modest size/weight cost £100's or £1000's to move from the UK port to my warehouse? Anyone know?

 

[Solve My Problem]

Single pallet won't be crazy expensive although always savings in larger quantities.

Just make some calls

 

[deyong.shi]

Any recommendations?

Also, do shipments of this modest size/weight cost £100's or £1000's to move from the UK port to my warehouse? Anyone know?

Knowing the volume and weight zip code will confirm the port to door delivery charges Email:[email protected]

 

[n_s_simpson]

Knowing the volume and weight zip code will confirm the port to door delivery charges Email:[email protected]

Thanks, email sent.

 

[n_s_simpson]

So I can compare quotes, please can people recommend other freight forwarders from UK port to my warehouse?

 

[Karimbo]

I used to be on the normal vat method before and the way I got the vat in my name is as soon as the supplier sent me a tracking number (air freight), I would phone up FedEx customs department and give them my eori to to assign to the order. These Chinese suppliers are notoriously bad at submitting the eori to the freight company. As long as the customs clearance have your EORI they can get the VAT assigned to you.

This was before brexit and quite a few years ago so I'm not sure how it works now. I am on the flat rate scheme now so I don't have to stress too much over these things.

 

[MOIC]

Don't rely on 1 quotation.

Get 6 quotes and compare prices and what it includes, especially the small print.

 

[paulears]

I’ve not paid ANY VAT on shipments since January. UPS and FedEx just deliver.

 

[Dinky]

Don't rely on 1 quotation.

Get 6 quotes and compare prices and what it includes, especially the small print.

What is your take on this please...

WARNING: The DDP China Alibaba scam is REAL! - AndrewMinalto.com

DDP: Delivered Duty Paid! It sounds like a dream come true for so many Amazon sellers importing products from China! Isn’t it great that you can pay a slightly higher price for the product and get it delivered to you with all taxes already paid for? Perfect! Or… is it? I’m afraid that when it

andrewminalto.com

In short the article explains that often the value will be underdeclared by the supplier so they pays less VAT, yet if caught you and not the supplier will be at fault/fined etc.

Most of my imports are small and so via air, however, with my one big import the DDP price quoted was barely more than the cost of VAT itself. With the above article in mind, I opted to import via my own forwarder. This of course wasn't as straight forward (for a newbie) and cost more. In future I would like to use DDP, if it's safe to do so? Or in other words, how can you guarantee the supplier won't underdeclare the value to pay less VAT? I know from experience with smaller items that even when when asking suppliers not to do so, which they agree to, they often still do it.

 

[Dinky]

So I can compare quotes, please can people recommend other freight forwarders from UK port to my warehouse?

I used https://www.freightos.com/ for my first big shipment; all went smoothly and I was able to claim VAT back. Just make sure supplier provides your EORI on documents.

All the way from China directly to my door, but you can opt for whatever you need, so from UK port to your warehouse. The website is basically a freight forwarder comparison site, where you simply pick the best for your budget (don't automatically opt for cheapest if poor ratings).

 

[paulears]

Quite a few air freight parcels don;t actually have a declared value I've noted recently. Occasionally, you get the 'held for customs' status but it usually clears quickly.

 

[MOIC]

What is your take on this please...

Ask your supplier for DDP VAT Unpaid.

It goes without saying that any importer should ensure the figures on documents are correct.

 

[MOIC]

I used https://www.freightos.com/ for my first big shipment; all went smoothly and I was able to claim VAT back. Just make sure supplier provides your EORI on documents.

Freightos may be good for getting comparable costs, but it does not find the best quote available.

 

[Dinky]

Freightos may be good for getting comparable costs, but it does not find the best quote available.

Can you recommend any companies please where best quote can be found?

 

[MOIC]

Can you recommend any companies please where best quote can be found?

You'll need to shop around and get quotes relative to your shipment. There are too many variables to have 1 forwarder give you the best quote for each and every consignment you ship. Factors will include the following:

• Departure port
• Destination port
• Container size
• Transit time
• Forward contract with the shipping line
• Delivery costs from port to your door
• Level of service you require

The list goes on . . . . . . .

If you're looking for the cheapest quote for each shipment, obtain and compare quotes from 3 - 6 forwarders.

If you want to work with only one forwarder, then compare the service they offer as well as the quote, to ensure it's competitive (not necessarily the cheapest).

In my opinion, it's best to have a good relationship with two forwarders.

 

[Billett]

I use Westbound logistics and ask my supplier for EXW. This means Westbound arrange collection from the supplier and then deal with everything up to my door. They then pay the duty and VAT and invoice me for it. I can then claim that back.