Confusing quote for a shipment from china

[jjscruff]

I get stuff shipped from China all the time but i've started using a new company
This latest shipment is just a small one, less than one pallet load of clothing

They want to ship the items DDP via ocean freight, total cost $300
There are no extra charges.

But i told them i'd be looking to claim back vat so would prefer DDU
The DDU quote was $150 shipping but then the duties were $482 alone.
Vat was extra, separately

I wondered how it could be that the same goods could be charged less duty on one service.
They explained that

"Because of the DDP service, which will do customs clearance of the entire container of goods. The tariff is shared on the entire container.

DDU service is a single shipment of customs clearance, customs clearance for your shipment alone, so the actual value of your goods will be used for customs clearance."

Is this right? Surely the same value of goods should always incur the same duty charge?


Thanks

 

[DontAsk]

Perhaps they are referring to the cost of the clearance, i.e. agents fees.

 

[Customs Geek]

It does sound very odd. Particularly as they have said they will use the actual value of your goods so are they undervaluing the container?
If they are delivering Duty unpaid why are they stating a duty amount at all?
Also bear in mind that they are quoting a price it may have no bearing at all on the actual duty amount.
Duty should be easy to work out yourself, duty on clothing from China is 12% of the value of the goods plus freight. VAT is 20% on the duty inclusive value. All UK customs charges are in GBP .
Also In order to reclaim the duty you must be the named importer and will be legally responsible for the accuracy of the declaration. Given what they have said to you do you want that risk?

 

[MOIC]

You need them to quote DAP (Delivered At Place), supply the address and you pay the Import Duty & VAT.

Alternatively, ask them for an FOB quote and you arrange the shipping from the port of departure to your door.

Are you buying via a platform? (Alibaba as an example)

 

[Mrcui]

I see your confusion, tariffs and costs seem to be a headache. But overall, including tax and not including tax are two options, and they are separate modes of transportation. If you divide this batch of goods into two batches for transportation, including and excluding taxes, you will find that the corresponding receiving time and transportation track are different, resulting in price differences

 

[Nebula-intl]

Hey I am a trading company from China. And what you worried is actualy quite common in the logistics. For the so called DDP, I guess they are putting their products among other goods and make it a full container. They will pay less shipping fee but the problem is the buyer, which is you, cannot get tax refund as the cargo is not imported by you, you cannot get the clearance receipt. Worse part is your product name may not even shown on the clearance document, It isn't smuggling, but it teeters on the brink of illegality Normally it is only applicable for those who don't care about tax but only want to receive the products in the cheapest way. If you have more questions on doing business with Chinese company, feel free to ask me.

 

[Customs Geek]

I see your confusion, tariffs and costs seem to be a headache. But overall, including tax and not including tax are two options, and they are separate modes of transportation. If you divide this batch of goods into two batches for transportation, including and excluding taxes, you will find that the corresponding receiving time and transportation track are different, resulting in price differences

I don’t see how duty paid or duty unpaid can be described as separate means of transport. Both terms can apply to any means of transport.

 

[Customs Geek]

Hey I am a trading company from China. And what you worried is actualy quite common in the logistics. For the so called DDP, I guess they are putting their products among other goods and make it a full container. They will pay less shipping fee but the problem is the buyer, which is you, cannot get tax refund as the cargo is not imported by you, you cannot get the clearance receipt. Worse part is your product name may not even shown on the clearance document, It isn't smuggling, but it teeters on the brink of illegality Normally it is only applicable for those who don't care about tax but only want to receive the products in the cheapest way. If you have more questions on doing business with Chinese company, feel free to ask me.

Thank you for your post.

If goods in a container are not declared or intentionally mis described or undervalued this is regarded as smuggling by UK Border Force and makes the goods vulnerable to seizure and the importer exposed to penalties.

Even if goods get through the border Customs have 3 years to ask for additional duty in case of errors , the time is unlimited if it is intentional.

 

[Nebula-intl]

Thank you for your post.

If goods in a container are not declared or intentionally mis described or undervalued this is regarded as smuggling by UK Border Force and makes the goods vulnerable to seizure and the importer exposed to penalties.

Even if goods get through the border Customs have 3 years to ask for additional duty in case of errors , the time is unlimited if it is intentional.

Yes, many forwarders now are refusing to do so, but it still happens for small cheap products.