First time importing from China. Hidden extras

Discussion in 'International Business' started by MrJLC, Jun 12, 2020.

  1. MrJLC

    MrJLC UKBF Newcomer Free Member

    6 0
    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
     
    Posted: Jun 12, 2020 By: MrJLC Member since: Jun 10, 2020
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    24,357 2,959
    Read the contract.

    You will also want to familiarise yourself with import duty on those type of goods and of course VAT at 20%.
     
    Posted: Jun 12, 2020 By: Mr D Member since: Feb 12, 2017
    #2
  3. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,610 1,319
    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.
     
    Posted: Jun 12, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #3
  4. MrJLC

    MrJLC UKBF Newcomer Free Member

    6 0
    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?
     
    Posted: Jun 12, 2020 By: MrJLC Member since: Jun 10, 2020
    #4
  5. CHUKTC

    CHUKTC UKBF Regular Free Member

    172 29
    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.
     
    Posted: Jun 15, 2020 By: CHUKTC Member since: Jan 2, 2019
    #5
  6. GraemeL

    GraemeL Pain in the neck? Full Member - Verified Business

    5,129 1,108
  7. Charlie Gr

    Charlie Gr UKBF Newcomer Free Member

    12 2
    Cant agree more Mike !
     
    Posted: Jun 15, 2020 By: Charlie Gr Member since: Jun 3, 2019
    #7
  8. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,610 1,319
    Why not?

    We quote and ship door to door from China to UK numerous times on a weekly basis.
     
    Posted: Jun 15, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #8
  9. MrJLC

    MrJLC UKBF Newcomer Free Member

    6 0
    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?
     
    Posted: Jun 17, 2020 By: MrJLC Member since: Jun 10, 2020
    #9
  10. delane167

    delane167 UKBF Newcomer Free Member

    4 0
    Hi, not sure if import duty and the VAT were also mentioned.
     
    Posted: Jun 18, 2020 By: delane167 Member since: Jan 22, 2020
    #10
  11. Maple Sourcing

    Maple Sourcing UKBF Regular Full Member

    370 79
    If the agent quoted you door to door price, you do not need to pay any extras except duties (if applicable).
     
    Posted: Jun 23, 2020 By: Maple Sourcing Member since: Oct 8, 2012
    #11
  12. MrJLC

    MrJLC UKBF Newcomer Free Member

    6 0
    Thank you, do you mean import duty? Isn't DDP Delivered Duties Paid?
     
    Posted: Jun 23, 2020 By: MrJLC Member since: Jun 10, 2020
    #12
  13. CHUKTC

    CHUKTC UKBF Regular Free Member

    172 29
    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.
     
    Posted: Jun 26, 2020 By: CHUKTC Member since: Jan 2, 2019
    #13
  14. Mr D

    Mr D UKBF Legend Free Member

    24,357 2,959
    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...
     
    Posted: Jun 26, 2020 By: Mr D Member since: Feb 12, 2017
    #14
  15. CHUKTC

    CHUKTC UKBF Regular Free Member

    172 29
    Very True Mr D! It's always worth looking at other options such as shipping yourself and compare the costs.
     
    Posted: Jun 26, 2020 By: CHUKTC Member since: Jan 2, 2019
    #15
  16. Mr D

    Mr D UKBF Legend Free Member

    24,357 2,959
    Been tempted a time or two to drive over there and load into the boot of the car. Quicker and cheaper....
     
    Posted: Jun 26, 2020 By: Mr D Member since: Feb 12, 2017
    #16
  17. MrJLC

    MrJLC UKBF Newcomer Free Member

    6 0
    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?
     
    Posted: Jun 29, 2020 By: MrJLC Member since: Jun 10, 2020
    #17
  18. CHUKTC

    CHUKTC UKBF Regular Free Member

    172 29
    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]
     
    Posted: Jun 29, 2020 By: CHUKTC Member since: Jan 2, 2019
    #18
  19. Gfplux

    Gfplux UKBF Newcomer Free Member

    4 1
    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.
     
    Posted: Jul 5, 2020 By: Gfplux Member since: Apr 28, 2020
    #19
  20. Import Expert

    Import Expert UKBF Regular Free Member

    335 134
    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.
     
    Posted: Aug 24, 2020 By: Import Expert Member since: Feb 1, 2012
    #20