First international import

[Caerleon9176]

Can any help me with the first steps on international trade with the US/China and Frieght.

I know about the standard tarrif codes and that links to your import duty, but that is the extent of my knowledge. The supplier is offering using thier own shipping agent to FOB in Liverpool, thier product is made in Xiamen and it can be shipped direct to for a $10 less per item charge.

I understand that i am liable for the duty and shipping to my home/store address, which on the Harmonised code make it 9.7%, but i read that this is only for the value over £180 of the total value? am i understanding that correctly?

The value of my order is £900 and it will all fit on one 75kg pallet.

I finally have a chance to get this company moving!

Many Thanks in advance!

 

[GraemeL]

Please read all of the stickies on here:-
http://www.ukbusinessforums.co.uk/forums/new-to-import-export-read-these-before-posting.175/

You will find lots of advice never to use a chinese factory or agent to arrange shipping. If it is to the UK, then use a UK based freight forwarder. You will find they give higher prices than the chinese quote. Read stick on FOB and CIF to find out why.

Very doubtful you will have anything to Liverpool from Xiamen. Most likely Felixstowe.

You will pay duty on £900 also VAT on the costs of goods, duty, insurance and any UK freight.

 

[MOIC]

As above.

Never believe what a China supplier quotes you for shipping your goods to your door.

They have a knack of omitting the full cost of UK clearance & handling as well as delivery to your door.

You will end up with an unpleasant surprise!

 

[Wavecrest Ltd]

Good advice from the previous two posters. The golden rule is never let the Chinese arrange shipping on your behalf. If you do, you will end up with a very large bill for handling etc once the goods land in the UK (either Felixstowe or Southampton). You will have no option but to pay these inflated charges or your goods will not be released. You are better to get a quote from a UK based forwarder which will include the UK handling etc. You will then have a good knowledge of your costs and will be able to see if it is still going to be economic to import the shipment.

 

[Caerleon9176]

Thanks all

 

[xnstandy]

You know that not every uk people are good, so as to not every Chinese supplier are bad. I admit that there are some companies which are not professional. Maybe he/her is a newbie on international trading business. Like you are new to international import.

As far as I know, the experienced suppliers will always list all cost for you. They always think more for you. You can choose a shipping company by yourself or ask them to choose one for you. It totally depends on yourself.

Chinese products are all over the world can be the proof.

 

[PreciseHandTools]

I'm figuring you'll know there'll be VAT to pay too?

Good luck ....exciting times for you

 

[Caerleon9176]

VAT registered =)

 

[japancool]

I admit that there are some companies which are not professional.

I think the connotations of the word "some" are probably different in English and Chinese.

 

[waj]

We used china based freight forwarders and they were absolutely fine. Found nothing wrong with them as they clearly stated all the costs with the breakup. As long as they are experienced, reliable and trustworthy then do not see a reason why not to use them.

 

[MOIC]

As long as they are experienced, reliable and trustworthy then do not see a reason why not to use them.

Given it's the OP first international import, I would advise him to use a UK Forwarder for an LCL shipment, at least this way he has comeback if anything goes wrong.

All China Shipping companies use a UK Forwarder to transact the UK Forwarding.

Most China suppliers will only give you the ocean shipping rate and not the UK Forwarding costs, which will not only confuse the OP, but will also land him with a hefty UK bill.

It's his first import, best to be safe.

 

[Import Expert]

As per above I would never recommend allowing the freight to be prepaid in China, especially with LCL (Part Load) cargo. As has been said you will get hit by some high costs on arrival UK, but also you have no control over which UK forwarder will be handling this shipment. Add to this there could be another one or two other freight forwarders whom are actually controlling the shipment (which happens when one forwarder 'co-loads' on anothers service, and you lose a lot of control over what happens to your products.

 

[japancool]

This summer I am traveling for the first time internationally. My journey will bring me from Atlanta through LAX to Sydney, Melbourne, and Singapore. I have traveled many times domestically, but now i need some tips. I have never been through immigration or a flight over 6hrs. If anyone could offer tips on getting through immigration, 12+ hr flights, etc... that would be awesome. What paperwork is there for an international flight? How do I stay comfortable in cramped economy? Tips? THANKS

Why are you posting this in someone else's thread on UKBF? This has nothing to do with business, and your flight doesn't even go through the UK.

You want Flyertalk for this sort of thing.

 

[Caerleon9176]

Ok so i have one skid arriving at Southampton with CIF terms to the port only, so im guessing that i have to find a company local that can also do the customs clearence. I have the tariff code etc, but rather than be stung with a high cost for deliving such a small load i should hire a van and collect myself?

Can i just pay the duty & VAT at the port plus handling and take the goods away? Or does this require handling?

 

[Paul Kelly ICHYB]

You will also need to pay for a company to administer the import.

If local, collecting yourself may be viable. If miles away, consider the actual cost plus the cost of your time - delivering a pallet should cost you £25-50!!

 

[Caerleon9176]

Ok, i got delivery agreed CIF terms, but the handling quote from globelink is as follows;-

One skid 65kgs -

Import Handling - £60.00
Import Service Fee - £100.00
Overseas Agency Fee - £50.00
Temp RoE Diff - £53.60

If required:
Customs Clearance - £55.00
Duty / Vat - charged at cost (TBA upon customs clearance)
Deferment Account - £25 or 1.5% total Duty/VAT charge (whichever is greater)
Delivery to Door - £120.00 (providing the cargo is not unusual size/dimensions)
Taillift facility on delivery vehicle - £50.00 The tail lift will move the goods to ground level (if required - please specifically request this service with us as it does not come as standard)

Now is it me or is this very costly?

 

[MOIC]

It's very costly.

My advice is to get an FOB quote, than arrange your own shipping, UK clearance & delivery to your door.

If you need any assistance, feel free to send me a PM, or contact me via the website in the link in my signature.

 

[Wavecrest Ltd]

It sounds like the shipment has already left China so you will have to pay Globelink's very high charges.

Even if we were to interevene on your behalf at this stage we would still be forced to pay Globelink's fees for the import handling etc so the only area where we may be able to make a saving for you would be on the clearance and delivery.

As advised previously, the golden rule is to get the supplier to quote you FOB and then arrange the shipping with a freight fowarder in this country.

Glen

 

[Caerleon9176]

Thanks - Not really making this import very profitable - i will be lucky to make 14% return.

As the company is in the US and I paid them direct, then i have passed this back to them as they arranged the shipment. I am hoping that they will get in contact with thier shipping agent to discuss this rather trumped up costs, i doubt it will sway them much, but worth a try as they didnt inform me of the landing costs and charging an overseas agy fee when its the same company!?! Not really good practice me thinks...

 

[GraemeL]

I did suggest you read all of the stickies at the head of this forum, which includes this:-

"The reason why freight forwarders always bang on about FOB for import shipments all of the time is twofold. Firstly the UK freight forwarder will the one making the money on the freight rather than the Chinese / overseas forwarder, but in addition it is very often much cheaper overall for the importer. This is because many suppliers in China are getting free or even negative ocean freight charges up to the UK. The UK agent of the Chinese forwarder will then make their money back by charging the UK importer extortionate handover / ancillary fees, which can come as a real shock. Therefore if you buy FOB you will at least know your final overall costs and have better control of the shipment. "

 

[Michelle Collins]

Hi
If you still need advice then do let us know, more than happy to assist.

 

[Caerleon9176]

Ok now onto the tax situation. As far as i was aware, please some correct me, but i am supposed to have been sent a tax form for the import VAT paid. This was all handled thru the agent and i need that certificate to reclaim the £180 back from HMRC. I have a VAT return due at the end of next month and while i discovered an issue with my accounting software, i will have to plug in the values manually.

Should the HMRC send me or the agent the c79 for?

 

[GraemeL]

Who actually sent the VAT payment to HMRC? HMRC will send the certificate to that person.

So if it was the agent, they will get the certificate and then should send it to you in due course. Of course it should have your company details on, including VAT number.

 

[MOIC]

Ask your agent.

It seems that initial advice given on this thread was ignored . . . . .

 

[PowerForwarding]

Just to note anyone in this situation of having shipped goods under prepaid terms can still contact UK based freight forwarders to handle just the clearance and delivery portion to see if they can save you anything.

While it may not save you a fortune every penny helps in these situations.

 

[AnnaDanishek]

My recommendation is to get an FOB quote and arrange your own shipping, UK clearance & delivery to your door.

 

[Smilemina]

If good supplier they will tell you the really shipping cost, pay all cost from China, or need pay from your side too. if the supplier not good, you have to be careful. try to find a forwarder by yourself, then you can control the cost. and if you goods enough shipping by container will be a better price.

 

[Mitch Cox]

Chinese will only quote FOBS to port. Then you must contact UK freight forwarder for clearance and delivery to door. This is normal.

 

[Smilemina]

Chinese will only quote FOBS to port. Then you must contact UK freight forwarder for clearance and delivery to door. This is normal.

exactly, if big quantity.

 

[Mitch Cox]

exactly, if big quantity.

Yep. Even in most cases I find the Chinese very helpful on moving LCL. I like working with them.

 

[Smilemina]

Yep. Even in most cases I find the Chinese very helpful on moving LCL. I like working with them.

But compare FCL, the LCL average price is high..so if possible always move FCL can save shipping cost...I have a client always like to use 40 HQ container.

 

[Mitch Cox]

But compare FCL, the LCL average price very high..so if possible always use container can save shipping cost...I had a client always like to use 40 HQ container.

Yep most of the redistribution we do for Europe is from 40FT. Only a few 45FT.

You have many customers in the UK?

 

[Smilemina]

Yep most of the redistribution we do for Europe is from 40FT. Only a few 45FT.

You have many customers in the UK?

Not many in the UK, but trying get more customers.

 

[Mitch Cox]

Not many in the UK, but trying get more customers.

I want to expand in this area. For those companies that pass all the checks, I'm happy to offer commission on the distribution in the UK & Europe. What do you think?

 

[Smilemina]

I want to expand in this area. For those companies that pass all the checks, I'm happy to offer commission on the distribution in the UK & Europe. What do you think?

I am Sourcing agent from China, If you know some one need my service in UK, then I do trade support, you do shipping support in UK. and if I have any client need your service no problem will contact you.

 

[Maple Sourcing]

If only 75 kgs, I'd suggest you go by air with a courier agent (DHL/UPS/FEDEX/TNT) who offers door to door service.

The courier will take care of customs clearance, it will save you lots of hassles. It's more complicated and possibly more expensive to go by sea.