First time importing from China. Hidden extras

[MrJLC]

Hi, this is my first time posting as this is my first go at looking into imports.

I work for an emergency service in the UK and due to government cuts, pay freezes etc. I decided to look into starting a small side business which is lucrative and has some longevity.

I have been looking on Alibaba and I have been looking for manufacturers to ship to the UK. I read that the safest way, in terms of fees, is to make sure they are on FOB terms. I then came across a supplier that would arrange to have my items shipped to my home address, 500kg of goods for 650USD.

Am I likely to incur any extra fees when I place the order or on delivery? Is this normal practice or does this sound too good to be true?

Thank you

 

[Mr D]

Read the contract.

You will also want to familiarise yourself with import duty on those type of goods and of course VAT at 20%.

 

[MOIC]

does this sound too good to be true?

Yes.

Get other shipping quotes and you'll find the true cost, landed at your door.

Don't believe what a China supplier tells you, without first checking all the details.

Due diligence before parting with any money.

 

[MrJLC]

If I buy on CIF terms or FOB terms and find a freight forwarder, would I then be paying for the freight forwarder costs PLUS import duties and VAT?

Am i missing anything?

Is there much difference between CIF and FOB?

 

[CHUKTC]

I would advise extreme caution when offered delivery included in the costs. If its a full container - you may be ok, likewise air shipping but in either case you need to allow for UK duty and VAT. The real problem is with part loads sea shipping - which I assume this is. many suppliers on Alibaba and other sites will offer to ship for you at low cost - or even for free - sounds to good to be true and usually it is! The problem comes when the goods arrive in Uk. You will be landed with a large bill for port and unpacking charges of the container - you will not be told these in advance and its determined by the shipper - effectively recouping their shipping coats from you in the process. A scam? perhaps not quite but it comes pretty close in my view. An agent in China will not be able to offer you a door to door price.
I am sure like all of us you want transparency and a clear idea of costs before purchasing - after all it will affect your bottom line.
My advice to our customers always is buy FOB and get a quote from a UK based company (assuming you are shipping to UK) to include shipping, UK port charges and onward delivery to you. If you need help with this or a quote let me know ([email protected]). Hope this helps.

 

[GraemeL]

Read this https://www.ukbusinessforums.co.uk/...if-and-fob-mean-and-the-pros-and-cons.288040/

 

[Charlie Gr]

Cant agree more Mike !

 

[MOIC]

An agent in China will not be able to offer you a door to door price.

Why not?

We quote and ship door to door from China to UK numerous times on a weekly basis.

 

[MrJLC]

Thank you for you responses, I'm starting to get more of an understanding of the whole process now.

I have been given prices for FOB to the local chinese port of the supplier and also CIF to UK port.

Which would be the safest option and what other charges am I likely to incur for each?
Would a UK FF cover all of the charges or will I still have to pay anything on top of the FF's charges?

 

[delane167]

Hi, not sure if import duty and the VAT were also mentioned.

 

[Maple Sourcing]

If the agent quoted you door to door price, you do not need to pay any extras except duties (if applicable).

 

[MrJLC]

If the agent quoted you door to door price, you do not need to pay any extras except duties (if applicable).

Thank you, do you mean import duty? Isn't DDP Delivered Duties Paid?

 

[CHUKTC]

Yes DDP is delivery duty paid - the seller pays the duty. But worth checking that they understand that - so you dont get a nasty shock later. Clarity at the outset is always worthwhile.

 

[Mr D]

Yes DDP is delivery duty paid - the seller pays the duty. But worth checking that they understand that - so you dont get a nasty shock later. Clarity at the outset is always worthwhile.

And some have been known to add on to total price in order to cover the admin of the duty paid...

By say a few hundred dollars...

 

[CHUKTC]

Very True Mr D! It's always worth looking at other options such as shipping yourself and compare the costs.

 

[Mr D]

Very True Mr D! It's always worth looking at other options such as shipping yourself and compare the costs.

Been tempted a time or two to drive over there and load into the boot of the car. Quicker and cheaper....

 

[MrJLC]

Thanks for all of your input.

Are there any tried and tested freight forwarders that you know about that would be worth contacting so I can consider FOB?

 

[CHUKTC]

If you want to email me the details of the consignment I will be happy to get a quote for you to compare. [email protected]

 

[Gfplux]

How would you be paying for the goods?
Why not speak to a freight forwarder in the UK. If you get a credit account with a FF the goods do not get delayed while you pay the VAT, import duty and any other costs.

 

[Import Expert]

Bit of an old post but certainly I recommend to most of our customers if LCL from China to buy on FOB terms, then get a quote from us from FOB China Port to UK door. All you then need to do is add on any potential Duty/VAT. You might want to consider marine insurance also depending on values, etc.

 

[MrJLC]

Bit of an old post but certainly I recommend to most of our customers if LCL from China to buy on FOB terms, then get a quote from us from FOB China Port to UK door. All you then need to do is add on any potential Duty/VAT. You might want to consider marine insurance also depending on values, etc.

Do FFs usually factor in any insurance to the quote when doing FOB?

 

[Import Expert]

Depends. It's not really expensive in the grand scheme of things.

 

[Ian Howard]

Some venders can offer the door to door service, it's a good way to save your time.

 

[paulears]

Most of my deliveries are air freight but even then things rarely stay static. DHL are running three systems. They phone you up from China and tell you a shipment needs paying - the usual tax/duty/handling. They also do it here, when it arrives, and you need to pay to get it delivered, or they deliver it and you get the invoice a couple of weeks later. Very difficult to plan and monitor. If it comes via sea then again, how it gets to you is variable. Vat usually charged as the consignment passed to the forwarder.

I'm intrigued by the notion of a contract. For values up to a couple of grand I've never had anything vaguely like a proper contract. Just an alibaba cashier request which I pay. For my equipment it's also very common for them to use the wrong description and even photograph when they input the request for billing. I order vehicle mounted radios and get a picture of walkie talkies!

I've noticed in the past few weeks old suppliers trying to get PayPal as a payment type rather than paying alibaba, which is not ideal if there's a problem, but I think alibaba may have increased charges to them?

 

[Karimbo]

best of luck with this. I have imported stuff in the distant past and have started doing it now for a retail business. I always shyed away from getting stuff that's too heavy and low value because the cost of storage and transportation would eat too much into the profit margin. Plus I live in London where space is a premium. I always imported stuff that I could store in a small box, small things that are worth a lot for the little space they occupy.

 

[Maple Sourcing]

Pls keep in mind that recently, the shipping cost keeps rising, so, do a clear calculation for landed price because you place a big order.

 

[paulears]

I started keeping a spreadsheet to keep track of orders coming from China with order date, dispatch date, the tracking numbers and carrier if known, and it makes no sense. Size, carrier, weight, date of the tracking number the deliveries come completely randomly. Some leave the supplier, arrive at the point of export and sit there for three weeks, then some show as left the country, but suddenly arrive here when tracking shows them still in china, while others show their progress in great detail, but then suddenly stall in europe. One yesterday that arrived turned out to be the second order and had leap-frogged the first one that is somewhere.

Getting DHL 'pay the import charges' notices are completely random, and DHL, the best and quickest I think, now has three totally different systems, as I mentioned - it's very easy to discover a delay because you didn't notice one is sitting waiting for a charge to be paid.

Slowest is always anything eventually delivered by Royal Mail this end. I don't think it's actually RM, but whatever system gets it to them. China Post was quite reliable but slow, but with prices going up they're sending things by services I've never heard of. It really is a gamble.

 

[Paul Kelly ICHYB]

500kg of goods for 650USD.

#

Think the same again for shipping.

Then add duty.

Then add VAT.

Then the same again for UK port clearance and delivery.

Your $650 order will then end up at about £2k to your warehouse! Does this still make the items you are buying good value?

 

[Alison H]

Hi,
This is my first post here. Actually, first post anywhere!
We have been shipping (by air) modest amounts of cargo from China over the past year.
The business has grown, and we are finding that most (in some cases, all!) of our margin is being eaten up by the air-freight costs.
So, I have decided to order larges quantity of goods from three suppliers in China, and to get them shipped by sea
I know nothing about sea freight, and have learned a lot about it by reading this forum over the past few days. Now at least I know the difference between FCL and LCL, and a 20-footer and a 40-footer .....!!
Question: Can anyone here please direct me to a freight-forwarder or shipping company that would be suitable for a small business person like me, importing from China.
Thank in advance for your help.

 

[Larry Fong]

Once you identify the right manufacturer, you should appoint a third party quality inspection company to take care of the quality issue and a reliable forwarder. It is important to take great care on quality as there are alright issues due to communication and misunderstanding etc.

 

[Larry Fong]

Once you identify the right manufacturer, you should appoint a third party quality inspection company to take care of the quality issue and a reliable forwarder. It is important to take great care on quality as there are alright issues due to communication and misunderstanding etc.

 

[paulears]

You can get stuff sent by surface transport too - It goes China to Russia, then through and my shipment I watched entering Europe in Hungary, and then eventually arriving here. Looking at the tracking, it looks like it came largely by rail. Not quite as long as sea freight but was cheaper than air.

 

[GraemeL]

Question: Can anyone here please direct me to a freight-forwarder or shipping company that would be suitable for a small business person like me, importing from China.
Thank in advance for your help.

I have used Woodland Global a lot in the past @Import Expert
@Mike Foulds makes sensible contributions on this forum