Help with international order

[UnreArcy]

Hi,

I'm ordering some items from China supplier and I'm confused, hope some1 can help me with that.

Supplier said "Our company demand that tax refund shall be made for each delivery, or we need to add 13% to the amount.

So can we do the custom clearance for this order? "

Trade terms are: FOB Shenzhen or Guangzhou for FCL; EXW Dongguan for LCL

I'm ordering just 200pcs so terms are EXW, I have told If they will not do custom I need to pay 13% more and the questions are:

1. Can they do custom to avoid that 13% even when it's EXW so I have to get forwarder to do that shipment?

2. What they mean by saying can we do the custom clearance for this order?

Would really appreciate If someone can help please

 

[CHUKTC]

The reason they are saying this is if they do the customs clearance in China they can caim back the China VAT which is 12%. This is very common. You can still do the shipping - just let them do the clearance and claim back the tax. Alternatively haggle with them - business is getting harder and harder in China due to all the restrictions and many factories are open to negotiation!

 

[MOIC]

Why not let them do the China Customs clearance? It shouldn’t affect anything on your side.

If you’ve sent the order payment order to their company account, they’re obliged to show they have exported the goods. The only way they can do this, is by their company doing the Customs clearance.

 

[UnreArcy]

Thank you for fast response guys.

So they can do customs clearance even when it's EXW and I'm responsible for door to door shipment, yeah so I'll let them do it.

I got one more question, I'll need forwarder anyway but do I need customs broker If I let them do it? And how does it work, is it about document they will fill out and give it to my forwarder when they pick up shipment from thier factory?

 

[MOIC]

How are you shipping, by sea or air?

 

[CHUKTC]

Your freight forrder should be able to provide an all inclusive service - i.e will handle shipping and customs clearance and deivery to you. It's usually a lot simpler than dividing up the tasks especially if you are new to this.

 

[MOIC]

Depending on the size and weight of the shipment, you might be better off shipping with an international courier (DHL, UPS, FedEx etc) as thus will be a door to door service and will arrive with you in approx 10 - 14 days. In this case you won’t need a UK forwarder.

If you decide to ship by sea freight, then my advice is to get quotes (typically 3 - 6 quotes) for a door 2 door service, check and compare them to see what they include. You should get your shipment within 40 - 60 days, given current delays.

You may find that shipping by air is preferable.

 

[Maple Sourcing]

It's fine to let the supplier do customs clearance. Yes, you need a shipping forwarder, ask the forwarder to quote you door to door price at term of EXW Dongguan.