China>UK>EU

[Freedom2023]

Hi all,

After a bit of advice, I am having a small electrical consumer product made in China that will only be sold to customers in the EU not the UK. I would like to store my bulk stock in the UK. That way I can quality check every item and make small changes to colours etc..

As far as I can see if I do this I will end up paying more duty than if I just imported from China to the Netherlands and held my stock in the Netherlands.

There doesn’t seem to be any way of avoiding double duty?

 

[MBE2017]

Not sure what method you would use to change a final made product once it’s been delivered? Spray paint etc?

Surely it would be better to employ a decent agent who could check before a production run is done.

 

[Freedom2023]

Hi, I just want to know if it’s possible to avoid the double duty scenario.

Thanks

 

[Deleted member 351022]

Yes there is.
Look at the various customs duty reliefs. You can use inward processing even for simple processes or put the goods in a customs bonded warehouse.

 

[Freedom2023]

Yes there is.
Look at the various customs duty reliefs. You can use inward processing even for simple processes or put the goods in a customs bonded warehouse.

Thanks, good to know there is a way. I think I need to speak to a specialist. Can anyone recommend a company?

 

[MOIC]

put the goods in a customs bonded warehouse.

Putting the goods in a customs bonded warehouse, will the OP have access to the stock to QC check and make amendments before shipping to EU?

 

[Freedom2023]

Putting the goods in a customs bonded warehouse, will the OP have access to the stock to QC check and make amendments before shipping to EU?

Hi Moic, I’ve been doing some more reading and no, I’m not sure about free trade zones either. Inward processing might be the way to go, depending on costs to register and the paperwork involved. I don’t mind if it takes a while to get the duty back if I pay and reclaim. As long as I know I can claim it back. I’m a micro company so I’ll need to use a consultant to help either way.

 

[MOIC]

You'll be able to claim the VAT if you're exporting as long as it's a B2B sale and not a B2C sale, without a lot of paperwork.

Import Duty, you'll not be able to claim back.

I might stand corrected on the above 2 points.

What's the process of making the small changes to colours?

 

[Deleted member 351022]

There is no mechanism to pay and reclaim import duty in the circumstances you describe. Provided you are VAT registered you should not suffer any unreclaimable VAT.

With Inward processing the import duty and VAT is suspended at import. If you are only having a few imports a year you can import up to three times in 12 months (rolling) by claiming the relief at import. If you are doing more frequent shipments you will have to apply for approval before import.
This is known as authorisation by declaration by HRMC . A good customs clearance agent should be able to do this for you provided you tell them you want to use IP and how long you will keep the goods in the country.
You must carry out a process but that can be a very simple process such as the QC and repacking, preparation for retail sale etc.
You also have to evidence the reexport and again tell your agent you are exporting under IP. You also have to tell HMRC that the goods have been reexported using a specific document called a bill of discharge.

A free zone isn’t the same as a customs ‘bonded‘ warehouse. HMRC don’t call them bonded warehouses so if you are researching you will need to look for customs warehousing on the . Gov website.
There are public customs warehouses run by third parties so you would need to check with them whether they would allow you on the premises for you to check your goods. You are allowed to do simple processes in a C W.

 

[Freedom2023]

There is no mechanism to pay and reclaim import duty in the circumstances you describe. Provided you are VAT registered you should not suffer any unreclaimable VAT.

With Inward processing the import duty and VAT is suspended at import. If you are only having a few imports a year you can import up to three times in 12 months (rolling) by claiming the relief at import. If you are doing more frequent shipments you will have to apply for approval before import.
This is known as authorisation by declaration by HRMC . A good customs clearance agent should be able to do this for you provided you tell them you want to use IP and how long you will keep the goods in the country.
You must carry out a process but that can be a very simple process such as the QC and repacking, preparation for retail sale etc.
You also have to evidence the reexport and again tell your agent you are exporting under IP. You also have to tell HMRC that the goods have been reexported using a specific document called a bill of discharge.

A free zone isn’t the same as a customs ‘bonded‘ warehouse. HMRC don’t call them bonded warehouses so if you are researching you will need to look for customs warehousing on the . Gov website.
There are public customs warehouses run by third parties so you would need to check with them whether they would allow you on the premises for you to check your goods. You are allowed to do simple processes in a C W.

Thanks for the detailed reply, so even though they will never enter circulation in the uk I will still have to pay import duty in the uk and then again in the EU. Doesn’t seem to be a way around that.

 

[MOIC]

. . . .then again in the EU

Your customers should pay the EU import duty.

 

[Deleted member 351022]

No, with IP you don’t pay any import duty or import VAT as duty is in suspense. UK Duty won’t become due if you reexport the goods.
So you or your customer will only pay EU duty.

 

[Freedom2023]

No, with IP you don’t pay any import duty or import VAT as duty is in suspense. UK Duty won’t become due if you reexport the goods.
So you or your customer will only pay EU duty.

Ok that’s good news, I’m speaking to a customs consultant this week hopefully he can confirm for me. I thought I was doomed to pay double import duty. I’m not changing the country of manufacture, I understand China duty has to be paid I just don’t want to pay the China duty twice if the product isn’t in circulation in the UK.

Appreciate all the replies.

 

[Freedom2023]

Your customers should pay the EU import duty.

Thanks, they will. I’m selling mostly through Amazon so I will pay the import duty and VAT to the Netherlands from the UK.

 

[Deleted member 351022]

You may have problems then If you are using couriers. They are not great at following instructions for special procedures.
You also didn’t mention Amazon in your post. If for instance you are using FBA this may also cause you difficulty in using IP.
Please tell your consultant all the facts as it could make a difference to what you can reasonably be achieved.

 

[Freedom2023]

You may have problems then If you are using couriers. They are not great at following instructions for special procedures.
You also didn’t mention Amazon in your post. If for instance you are using FBA this may also cause you difficulty in using IP.
Please tell your consultant all the facts as it could make a difference to what you can reasonably be achieved.

I will, yes FBA only so I will stock up chosen Amazon warehouses in Europe from my bulk stock in the UK. Not on a sale by sale. It would be a quarterly re stock.

 

[Bester]

Yes there is.
Look at the various customs duty reliefs. You can use inward processing even for simple processes or put the goods in a customs bonded warehouse.

Yes. I also think this is a good way.

PIR Motion Sensor Switch for lighting control, a small product for wholesale.

Alibaba link for your reference, Shenzhen Bester Technology company brand:Rayzeek, products directly from Bester tech factory.

EU standard, and UK standard, with required voltage and shape, wire color:

Search or search on Alibaba:

EU Standard Occupancy Sensor CE RoHS Light Control Wall Mounted PIR Motion Sensor Switch​

Atten:[email protected]
Grace Liang
Whatsapp:+8617889552108

 

[Mike333]

Hi all,

After a bit of advice, I am having a small electrical consumer product made in China that will only be sold to customers in the EU not the UK. I would like to store my bulk stock in the UK. That way I can quality check every item and make small changes to colours etc..

As far as I can see if I do this I will end up paying more duty than if I just imported from China to the Netherlands and held my stock in the Netherlands.

There doesn’t seem to be any way of avoiding double duty?

Hello,in china we have a free tax zone near some ports,you may check if you have in UK.People can import raw materials to this zone in china,but our government will not charge import tax,after the processing of goods,you can export them directly from the zone.But you can not deliver the materials or finished goods out of the zone without permission.So maybe you have to rent a warehouse in this zone if UK has.

We supply electric appliances.Hoping for cooperation if possible.Thanks.
etoolcn.com

 

[Deleted member 351022]

Hello,in china we have a free tax zone near some ports,you may check if you have in UK.People can import raw materials to this zone in china,but our government will not charge import tax,after the processing of goods,you can export them directly from the zone.But you can not deliver the materials or finished goods out of the zone without permission.So maybe you have to rent a warehouse in this zone if UK has.

We supply electric appliances.Hoping for cooperation if possible.Thanks.
etoolcn.com

Yes we do have free zones in the UK but they are unlikely to be of benefit to the OP unless they are a significant importer.

 

[Paul Kelly ICHYB]

It might be more cost effective to store them in the EU and visit the stock when it arrives and make changes - you need to crunch some numbers.