Importing from China to UK Query

[Andrew1789]

Hi All,

I've recently started a small business and I am in the process of importing 100 products into the UK. The manufacturer in China will soon start manufacturing the products and will be sending them by air, but I had the following questions if anyone can help:

1. When importing goods from China into UK by air how does the process work from once the products are manufactured? Do I need to send any information to the suppliers?
2. Who would I give my EORI number to and when do I give it? If goods are coming by air, does the air courier contact me or do I need to contact them?
3. When goods reach the UK customs I know I need to pay UK Duty & VAT How do I do this and who is it paid to?
4. Once it's cleared customs how do I get my products delivered to my home? Would I need to contact another courier to pick up goods from the airport and deliver to my home?
5. What's the difference between air freight and cargo? I thought they both meant the same thing

Many thanks

 

[Maple Sourcing]

"Shipping by air" usually have two different ways:

1) Air Freight: from China airport to UK airport. Usually your supplier need to send the products to airport in China, then the airline company will fly them to UK, and finally, you need to hire a forwarder to clear the customs, pay duty & VAT, and transport the products to your premise.

2) Air Courier: from door to door. The courier usually will ask you to pay duty & VAT (by credit card or cash) when the products are delivered to you. If the amount of duty & VAT is large, the courier may call you in advance so you are prepared for the cost.

Obviously #2 is faster and more convenient but more expensive. In you case, however, I'd suggest you try #2 to save hassles.

You may learn more details from this article: http://www.maplesourcing.com/blog-full-article.aspx?bid=57

 

[LondonSW1]

Importing from China may not be as straight forward as you think.

You will discover that you will have many delays (they go back and forth endlessly - weeks and weeks on end sometimes). You will often have many promises of both quality and price which change many times over before you receive your product, and which may end to be nothing close to the quality you expected.

I have stopped importing from China because the quality is often quite poor it's only good for Poundland or Primark clientelle while the Chinese sales prices are too high to be competitive for that particular market. The production timeframe often does not match the promises from China, and neither does the prices. The prices you find on AliBaba for example, is rarely your final purchasing price. In the end I find China only 15-30% cheaper (most of your profit margin is lost by shipping costs and import duty so in the end it's not always hugely cheaper) than buying from the UK. With a UK order you can check quality easier and orders are processed much faster with less delays.

1. You don't need to send any other information except your address. The cheapest shipping is by China mail, which has some weight restrictions. 100 items is a small quantity and should qualify for China mail or they can divide it into more than one package. China mail is roughly US$7 per 10 lbs. You will rarely be quoted the real shipping rate by your manufacturer or seller.

2. I would suggest that you arrange a pick-up delivery if you order many goods. Chinese sellers tend to squeeze profits into every little thing they can utilize - including overcharging you for shipping - by a lot. For example, if your actual shipping costs are around £50 they will easily charge you more than double for it. They will often quote you "set-up fees" while there is usually no such thing. It's just imitated from higher quality procedures in the West which they try to make extra money on.

3. Yes, you will be obligated to pay import duty. The shipping company will inform you that duty is due - or you will get an invoice if you don't pay at delivery. I usually get a notice from DHL and pay towards their invoice by phone or online.

4. The shipping company takes care of the customs procedure. You don't need to do anything except wait for your products to be delivered - and either pay your VAT on delivery (if this is demanded from you) or wait for the invoice.

5. Air courier is basically international version of airmail like DHL, TNT, Parcelforce, etc and is shipped straight to your address. It's more expensive than regular mail but delivers faster.
Cargo means by sea and implies large container shipments by sea and takes a long time. 100 pieces is a very small order and unless you order cars or some other massive items, cargo will probably not be anything you need to use. It's also more complicated as far as documentation goes, pick-up which may be at a drop-off point.

Chinese sellers often offer to ship a sample product. If you plan on long-term business it's worth to take up the offer although it may slow your production time down (quite) a bit.

If you plan to order larger quantities from China, I highly discourage you to do so unless you travel to China in person and are present during production and to check quality before anything is actually shipped.

For the best and most painless business trade with China, don't order anything that has to be customized... Buy stock of something they already have at hand and which they already manufacture and know how to do, which needs no other personalization made to it. That is fastest and most efficient way to do business with Chinese manufacturers.

 

[paulears]

It always annoys me how much shipping for heavy items is, and even light orders attract silly fees. I usually import microphones - one of my older suppliers I'd not ordered form for a while, re-introduced one of my old popular mics, so I got a price for 100, $26 each, but the shipping was estimated to be over $300 - which is a lot for a total weight of less than 28Kg.

 

[LondonSW1]

@paulears They could easily have shipped your microphones through China post for around $20 but chose to instead rip you off. Even if they'd ship them by DHL I can't see them cost more than perhaps £80 or so. It's important to ship in boxes within a dimension that does not change the rate too much.

Correct me if I'm wrong, but I think woodland-group.com will do pick-ups from China? (Don't quote me on that. It's something I've heard and would have used if I still ordered from China. It's best to use your own pick-up).

 

[paulears]

I think your assertion that it's simply extra funding is spot on. They really don't want my order for 100 - many have upped moq for these kinds of product to 500, so adding to the shipping costs is a crafty solution

 

[Andrew1789]

Thanks all for your help and advice!!
So I went ahead and purchase over 150 units from China. It was delivered express air delivery door to door. DHL delivered it to my door. From placing the order in China to receiving it in London, it took only 5 days! Although express delivery costs a bit more it arrives quickly. Also, DHL dealt with customs etc and including the fee within the delivery costs so I didn't have to worry about filling any import forms etc.

 

[Maple Sourcing]

Good to hear your progress!