Importing from China hidden costs

[Jacky12345]

Hi , I'm really new in that so will need some advice
We are cleaning company and trying to import some products from China
We found what we need and we have been quoted CIF , it is 1 full 40HQ .
As far as I know CIF price will cover all the costs to uk port , my question is - is there any other charges that we have to expect until collect the goods from the port and what should we do to avoid all the traps

Thanks

 

[findnewland]

If you let your supplier arrange the freight service that you may fall in to the trap.
The best way is that you find a local freight forwarder quote you directly and responsible for you.They will quote you low price then your local freight company and no trap .

 

[kimberling]

He is right, I am a chinese and I am working for a Danish importer, I know that some chinese factories will quote you very high shipping cost as they quoted CIF price.

The best way is quote FOB price, you find the shipper yourself. Or even you have them quote Price intax, you find someone export for you. That's can save more cost also.

Kimber Ling

 

[GraemeL]

Hi , I'm really new in that so will need some advice
We are cleaning company and trying to import some products from China
We found what we need and we have been quoted CIF , it is 1 full 40HQ .
As far as I know CIF price will cover all the costs to uk port , my question is - is there any other charges that we have to expect until collect the goods from the port and what should we do to avoid all the traps

Thanks

Yes there are other costs, such as 20% VAT and whatever duty applies. Recommend you do not use CIF as you have lost control of the shipment, use FOB. The content of your question indicates that you really do need some help. Suggest you make contact with a UK based freight forwarder who can guide you.

G

 

[PowerForwarding]

We are a UK based freight forwarder and can get you total costs through to door if required. Please email me on [email protected]

 

[Jacky12345]

Thanks to all , another issue :

We don't have a paypal account that can receive the payment since we are not doing the retail like the ebay or those online shop. We just do the formal wholesaler business and manufacture the products.​

If you confirm the order, could you make the payment by Telegraphic Bank Transfer to our business accountant. Then you can pay the balance against copy of bill of lading.​

Can i trust him? ​

 

[GraemeL]

Nothing wrong with what is being said. Whats the value of the purchase you are making?

G

 

[Jacky12345]

The FOB value is around 11000 GBP

 

[GraemeL]

OK, its significant.

I am sure you recognise that the factory trusts you about as much as you trust them until you get to know each other. Both of you want to reduce risk.

So they want full payment as the goods go on board as once they do, they in effect, belong to you.

You don't really want to pay until they arrive, you have opened the boxes and checked all okay. (1)

You could go down the escrow route, provided you get agreement from the factory. But its not usual. My recommendation is that you have the goods checked by your agent before they leave the factory. You are trying to achieve (1) before the product moves. I would always do that. Your agent would need a document telling them what the specification was that you are expecting.

Helpful?

G

 

[christina2011]

If you confirmed the order or they signed PO back,you can make payment for 30% deposit first and the balance you will pay against the copy of bill of lading.

 

[finejewellerys]

Thanks to all , another issue :

We don't have a paypal account that can receive the payment since we are not doing the retail like the ebay or those online shop. We just do the formal wholesaler business and manufacture the products.​

If you confirm the order, could you make the payment by Telegraphic Bank Transfer to our business accountant. Then you can pay the balance against copy of bill of lading.​

Can i trust him? ​

I just want to know if you do business with this wholesaler in the first time? or have you tested the products before?

 

[Jacky12345]

it is first time and we never test the product. Thanks

 

[finejewellerys]

it is first time and we never test the product. Thanks

if so, i think 11000GBP to bank wire transfer is in high risk.coz, it is not a small money.Maybe you should try to test the several samples firstly.

 

[BLintl.]

Why not trying a Letter of Credit or ask the seller to provide Advance Payment Guarantee? Check the product before it leaves and you are both safe.

 

[linda stephenson]

I have items being shipped from China, I have been asked for the freight company that will deal with it when it arrives in Flexistowe,
I don't have one can I just collect the shipment and take it through customs my self,

Please help...totally confused

 

[stenique]

Try L/c For Higher Insurance

 

[laptop motherboard seller]

I am chinese exporter .so I suggest you find the Local forwarder better .

 

[richardho2007]

its better to get FOB quoted.
CIF is more use for raw material

 

[PowerForwarding]

Linda,

I can help get your cargo from Felixstowe to your door, if you send me an email on [email protected] i'll get you a price. Can you also advise whether the cargo has shipped yet?

 

[GraemeL]

I have items being shipped from China, I have been asked for the freight company that will deal with it when it arrives in Flexistowe,
I don't have one can I just collect the shipment and take it through customs my self,

Please help...totally confused

Hello Linda,

Might have been better for you to start a new thread as yours could get lost here.

You definitely do need help.

Robert has already replied to you. Make sure you know about VAT and duties.

G

 

[Jacky12345]

Ok , i know that im asking too much but will appreciate your help
The supplier will arrange the shipping via DHL to my door , i will pay via paypal , how do i pay the duty and vat?

 

[GraemeL]

Ok , i know that im asking too much but will appreciate your help

Hello again,

To be honest, you are right. You appear to know so little about importing that there is a high probability it is going to go wrong, because you will not have thought of everything. And you CANNOT totally rely on information from a forum, unless you a heavy gambler! Sorry.

 

[Jacky12345]

Hello again,

To be honest, you are right. You appear to know so little about importing that there is a high probability it is going to go wrong, because you will not have thought of everything. And you CANNOT totally rely on information from a forum, unless you a heavy gambler! Sorry.

Sorry will be great if you answare the question

 

[GraemeL]

The answers is that you need practical help, not on a forum, which may not be free. Robert has replied to you.

G

 

[MOIC]

Hi , I'm really new in that so will need some advice
We are cleaning company and trying to import some products from China
We found what we need and we have been quoted CIF , it is 1 full 40HQ .
As far as I know CIF price will cover all the costs to uk port , my question is - is there any other charges that we have to expect until collect the goods from the port and what should we do to avoid all the traps

Thanks

Hi jacky

You will have to pay Import Duty and Vat on the value of the goods you have purchased. Additionaly you will have to pay clearance charges for the container and delivery to your premises.
If you need any further help and advice, feel free to contact.
Best regards
Ron

 

[Schalk Bornman]

Hi There, I am new on the forum. I need advice please.

I brought in a consignment CIF Southampton, from China. However, I got stung with massive hidden charges including the CHINA IMPORT SERVICE FEE. These charges more than double the original cost - I am not even including import duties, VAT, and transport to my place. Bottom-line - I cannot make a profit on this consignment any more.

I am now refusing to accept the consignment - i.e. I am refusing to pay any of the hidden charges. That means they will not release my consignment and will start adding holding/storage fees etc.

My question: What is my legal position? I understand customs will/might confiscate the consignment and destroy it and I will have to pay their bill. But can they (the import agent of the exporter) take me to court and force me to pay their charges?

Where can I find legal advice?

 

[MOIC]

You have 3 options:

1. Negotiate with your "exporter' to pay some of the fees.(Unlikely)

2. Pay what is due. (Your best option)

3. Don't pay, lose the goods and get a court summons for unpaid fees. (Probable)

Go for option 2 and in future use an agent who knows what he is doing and who you can trust.

 

[PowerForwarding]

As above but also contact some other UK freight forwarders as they can take over with the customs clearance and delivery which won't save you lots but every little helps so to speak.

 

[paulears]

There's so much good advice about importing here, I'm surprised so many people seem to spend their money first, then seek help afterwards?

To Jacky - depending on which courier is going to deliver it, this is how it works.

If they have an email address for you, they will use this, if not the delivery address - they will supply you with an invoice that details how much they have paid on your behalf, plus any processing fee - 10-14 quid. They expect you to normally just transfer the money to their account using details provided to you, or you can with some phone them up and pay with credit/debit card which may attract a fee. They will then deliver it. Some do NOT contact you but will attempt delivery and ask for payment at that time - usually credit/debit card. Others will do very little, and wait for you to contact them once you have seen the tracking info that says goods awaiting delivery or 'held'.

Any of these can happen - and sometimes the same firm do it a different way. One contacted me asked for payment, I paid and then they said it will be delivered. Ten minutes later they arrived and asked if I had paid - I showed them the email and they unloaded the goods.

All variations on the same thing.

This really only applies to air freight. If they have sent them by ship - then you really should organise things so that delivery this end is NOT a problem. Finding your shipment on the dock at Felixstowe and nothing arranged is quite tricky to resolve, and even going there is bad news - because they're just not set up to allow people to collect goods in this way. Paperwork at these places is 100% vital. There are plenty of ways to organise ocean delivery safely and reasonably cheaply - but doing it from port of entry yourself is tricky and expensive.

 

[iaminchina]

you could ask cargo agent in UK directly. they offer The Customs clean service. hope it could help you.

 

[BartJr]

Ok , i know that im asking too much but will appreciate your help
The supplier will arrange the shipping via DHL to my door , i will pay via paypal , how do i pay the duty and vat?

Once the item will be in the UK, DHL will sent you a quote to pay which will include duty etc. If you don't pay they won't deliver it