Hong Kong Purchases

[csstrading]

Hope someone can help, i have a thriving electronics business but i know feel the need to import in direct from asia, can anyone help me on where is stand if the items i purchase from hong kong are sold to uk people. waht happens afar as vat is concerned?? does the duty i pay count against any vat i owe??

steve

 

[franco_24]

Hope someone can help, i have a thriving electronics business but i know feel the need to import in direct from asia, can anyone help me on where is stand if the items i purchase from hong kong are sold to uk people. waht happens afar as vat is concerned?? does the duty i pay count against any vat i owe??

steve

Steve

Depending on the value of your order and the price you intend to move the goods on for you should consider registering for VAT. That way you can claim your VAT back from Customs & Excise after you have imported the goods. If you are not registered for VAT you will just have to pay it and transfer this charge on to your customers.

Other than a good import agent/handler to sort out the paperwork the process is fairly straight forward and a local shipping agent handler will be able to explain the process to you. It actually isn't that difficult to import these days.

 

[frauke]

The only hold up you may find is that any Duty & VAT has to be paid straight away. If you don't, some shipping agents will charge for storage until you can and that can add to the costs. It is possible to arrange a "deferment account" with the C&E which you can give the shipping agent permission to use - and they also will not charge you a handling charge for initially paying any Duty & VAT. Because the account is paid the 15th of following month by direct debit (helps cash-flow) your Bank will have to guarentee the deferment account - usually up to 2x the monthly credit limit you request.

 

[Sheena]

I have a contact in Hong Kong who specialises in sourcing electronics components. If you would like details, please send me a PM

Thanks

Sheena