How to deal with this international business structure?

Discussion in 'International Business' started by snowcoconut, Oct 14, 2020 at 11:48 AM.

  1. snowcoconut

    snowcoconut UKBF Newcomer Free Member

    28 0
    Hi,

    I would like to ask for some help with a business structure I'm working on.

    The idea is:
    - I run a packaged food online shop as sole trader in the UK
    - When I make a sale, the payment goes to my UK bank account and I invoice the customer as UK sole trader.
    - The products are then shipped to the customer from Taiwan by a limited company I setup in Taiwan
    - My Taiwanese company issues an invoice to myself as UK sole trader for the service provided.

    My question is: how does it work with the paperwork for international shipment and customs?
    I read that when shipping internationally I need to provide a Commercial Invoice and an Export Packing List.

    But the Taiwanese company would be invoicing me as UK sole trader and not the customer.

    Is it ok to attach a Commercial Invoice from my Taiwanese company to me as UK sole trader, even though the package is going to the customer address?

    My customer should be the one responsible for customs and duties (they will be informed about that)

    Is there a way to avoid the customer receiving that invoice?

    Any advice is appreciated

    Thanks!
     
    Posted: Oct 14, 2020 at 11:48 AM By: snowcoconut Member since: Sep 25, 2012
    #1
  2. Ray272

    Ray272 UKBF Regular Free Member

    322 48
    Taiwanese company simply completes paperwork and marks the end user, your buyer as the recipient as they are responsible for duties and taxes.

    You create invoice from uk company and mark it as ex works Taiwan. Send that to client. Ensure values correspond in the event of inspection.
     
    Posted: Oct 15, 2020 at 12:33 PM By: Ray272 Member since: Jul 5, 2017
    #2
  3. Import Expert

    Import Expert UKBF Regular Free Member

    339 134
    You would use the invoice from you to your customer for customs purposes. Assuming the buyer knows the goods are coming from TW then what incoterms you use will depend who is responsible for the Duty/VAT and arranging the customs clearance. (Unless using courier in which case they will handle)
     
    Posted: Oct 16, 2020 at 2:24 PM By: Import Expert Member since: Feb 1, 2012
    #3