Importing from China: Am I missing anything?

[joeh2]

Hi guys. This is my first post here - hope everyone is well.

I've been communicating with a manufacturer in China for some time now and have made an order for some custom products. These have now been produced and are ready to be shipped.

I've registered for VAT and found the import code which is relevant for the majority of the import, however there are some items that aren't compatible with this code. Can anyone advise as to what this means please? The import code I found means I don't have to pay any additional duty however I'm not sure about the other products.

As the import is a relatively small order, I don't feel I am being taken very seriously by the manufacturer. They've been really helpful in fulfilling my small order however I don't feel that they are taking the same steps they might take with larger buyers and it's left me feeling a little lost.

So, tomorrow they will be approaching me with shipping options - does anyone have any advice please?

Thanks!

 

[japancool]

I've registered for VAT and found the import code which is relevant for the majority of the import, however there are some items that aren't compatible with this code. Can anyone advise as to what this means please? The import code I found means I don't have to pay any additional duty however I'm not sure about the other products.

It means you pay the relevant duty on those particular products, assuming they are declared correctly.

As for shipping options, it depends on the size and weight of the shipment.

 

[joeh2]

It means you pay the relevant duty on those particular products, assuming they are declared correctly.

I see, so it depends what the manufacturer writes on the shipping declaration? I don't need to include additional tariff codes?

 

[japancool]

I see, so it depends what the manufacturer writes on the shipping declaration? I don't need to include additional tariff codes?

The manufacturer should include those on the customs declaration. You should provide them with the correct codes and make sure they do so. Not all will.

 

[paulears]

Tariff codes relate to the duty - nothing to do with VAT, and the shipping costs get VAT levied of course. They will supply the goods excluding VAT, and the duty will be charged to you by the freight forwarder, import agent or even by the people who collect it, on your behalf from airport or port, depending on whatever you have agreed, delivery wise. what kind of cost, weight and size are we talking about? A few boxes by air freight or a container on a ship? It's very easy to get the shipping wrong - you MUST be absolutely;y clear on how they will send it and on what terms.

If you've used the HMRC duty calculator you will get a good idea of the amounts - but oddly, expected duty sometimes does not get charged, but where it does, mine have always been close to the expected rate. You mention the VAT registration - you might also want to get an EORI number - a variation of your VAT number HMRC allocate.

 

[joeh2]

Tariff codes relate to the duty - nothing to do with VAT, and the shipping costs get VAT levied of course. They will supply the goods excluding VAT, and the duty will be charged to you by the freight forwarder, import agent or even by the people who collect it, on your behalf from airport or port, depending on whatever you have agreed, delivery wise. what kind of cost, weight and size are we talking about? A few boxes by air freight or a container on a ship? It's very easy to get the shipping wrong - you MUST be absolutely;y clear on how they will send it and on what terms.

If you've used the HMRC duty calculator you will get a good idea of the amounts - but oddly, expected duty sometimes does not get charged, but where it does, mine have always been close to the expected rate. You mention the VAT registration - you might also want to get an EORI number - a variation of your VAT number HMRC allocate.

Thanks for your detailed reply. I'm buying direct from the manufacturer without an agent and as far as I'm aware its going to be shipped by DHL for around £200, but this is approximate and they'll be getting back to me tomorrow. (9kg in weight - size I'm not sure of yet).

When I registered for VAT today I checked the box for an EORI number.

Should I make the supplier aware of the tariff code, so they can include it on the shipping declaration? Or is that just for a description of the contents and customs will therefore make their own conclusions of the tax due?

In all honesty I started proceeding with this without even considering tax and duty - so a huge oversight on my part and a big lesson learnt. I'm just hoping the duty and VAT doesn't impact on my profit margins as the markup isn't very big as it is.

 

[MOIC]

The manufacturer should be aware of the HS Code, if they've been exporting similar products before. You can then confirm the HS Code on the UK tariff site using the following link (sometimes there are small differences):

https://www.gov.uk/trade-tariff

If they are charging £200 for a 9kg shipment, then I presume the package is bulky. Ask them to get quotes from UPS too, as currently they are cheaper.

 

[paulears]

I import antennas. 130cm long, plus a small box with each one. Two separate suppliers, long term now. It's crept up to around $150 dollars. They now get shipped separately, rather than in one big box with airspace and airbag packing. One box is around 18Kg, and the other about 6Kg. Together they cross some kind of weigh/size line but the two boxes are considerably cheaper. DHL will charge you the VAT and a handling charge, currently around £12 - they will also charge you the duty - if any is levied. Your supplier's job finishes on handover to DHL/Fedex/UPS they will sort the delivery and any charges. To a degree, VAT is therefore irrelevant as it's 'claimed back' in your VAT return, as is the VAT on their handling charge. The Duty is not recoverable of course.