Importing From China

[[email protected]]

Hi guys, i'm new top this site and i'm justing looking for some basic info about importing goods from China-I imagine it's been covered here a few times so if anyone can point me in the right direction that'll be great. I am a (very) small manufacturer of gym equipment and I recently noticed a company on ebay selling a very similar product to mine at a third of the cost (obviously chinese made but quality looks good), I have the attitude 'if you can't beat them, join them' so am looking at importing similar products. i am particularly interested in the logisitics side, is it cost effective to import pallets of stuff or does it need to be full containers to be cost effective. The products i am looking at generally weigh between 5kg and 10kg per item. I am looking at importing around 200 items as a starter to see how it goes, i've seen some potential sellers on Alibaba.
Any advice appreciated! p.s. do you need to be VAT registered to import stuff from China (for the customs paperwork etc?)
Thanks, neil

 

[KWilding]

Hi Neil,

Importing from China is a fairly straight forward process.

You can import both full and part containers, depending on your particular requirement.

Typical costs for part container loads is as follows

Seafreight : USD 60 Per 1000 Kgs or 1 Cbm (Depending on where in China you are shipping from

Port Infrastructure Charge : GBP 1.50 Flat rate
Security Charge : GBP 3.50 Flat rate
Presentation : GBP 16.50 Flat rate

LCL Terminal Handling Charge : GBP 52.00 Per 1000 Kgs or 2 Cubic Meters

Delivery : Cost dependant on destination

Customs Entry : GBP 40.00 Flat rate
DTI Fee : GBP 4.10 Flat Rate

Deferment Fee : GBP 20.00 for payment of Duty & VAT on your behalf - Flat rate

Import Service Charge : GBP 20.00 Flat rate

Whether or not it is cost effective is something you will need to calculate.

You will have customs Duty & VAT to pay.

You do not need to be VAT registered, but you will need to apply for an EORI Number if your intention is to re-sell the product, again a straight forward process.

When discussing your purchase with supplier, be sure to insist on buying goods under terms FOB (Free On Board), and take control of the shipping and freight costs, this will be in your best interest.

You will need to appoint a freight forwarder to arrange the shipping from China to the UK.

With regards to the delivery, you can ask a freight forwarder for a proce or you can collect from their warehouse at or close to the port.

If you need any further details, let me know.

Kevin

 

[Lorro2]

Why do you want to import goods from China? Believe it or not we can compete with China in Europe and the UK. Importing from China is fraught with problems such as increasing piracy on the seas, wage inflation, maintining quality of manufacturing, copying, pollution and environmental concerns and the list is endless. To me importing goods from China is a lazy get rich quick way of looking at business and has had its day.

 

[[email protected]]

Why do you want to import goods from China? Believe it or not we can compete with China in Europe and the UK. Importing from China is fraught with problems such as increasing piracy on the seas, wage inflation, maintining quality of manufacturing, copying, pollution and environmental concerns and the list is endless. To me importing goods from China is a lazy get rich quick way of looking at business and has had its day.

I would rather not but the products that I designed which used to be my main product is dying off because of the competition from China. I sell my product for 30-40 pounds, the material costs on their own are around £7, I saw a company on ebay selling a very similar product for £13, now taking into account ebay fees and his profit (which must be small), he must be buying them in (including shipping/taxes etc) for i'd guess around £5-8, so he could buy them in made up for about the same as it costs me to just by the materials to make them! If they looked like a pile of flimsy Chinese rubbish i wouldn't be concerned, however, hand on heart, they look compariable quality to mine!

 

[[email protected]]

Really useful reply, many thanks Kevin. So I need to confirm price with supplier FOB, do I then just confirm price/details with Freight forwarder and put the freight forwarder in contact with supplier, or do I arrange a suitable time/date for the supplier to deliver to port that fits in with the freight forwarder? Does the freight forwarder pay customs and VAT and then recover that from me, or do i pay HMRC direct? I'm guessing the customs entry/dti/deferment fees and service charge are the same no matter what size/weight of import (therefore it is more cost effective to import a greater quantity)? Kevin, if you are in this business please forward your details as I will be getting some quotes in soon.

thanks, Neil

Hi Neil,

Importing from China is a fairly straight forward process.

You can import both full and part containers, depending on your particular requirement.

Typical costs for part container loads is as follows

Seafreight : USD 60 Per 1000 Kgs or 1 Cbm (Depending on where in China you are shipping from

Port Infrastructure Charge : GBP 1.50 Flat rate
Security Charge : GBP 3.50 Flat rate
Presentation : GBP 16.50 Flat rate

LCL Terminal Handling Charge : GBP 52.00 Per 1000 Kgs or 2 Cubic Meters

Delivery : Cost dependant on destination

Customs Entry : GBP 40.00 Flat rate
DTI Fee : GBP 4.10 Flat Rate

Deferment Fee : GBP 20.00 for payment of Duty & VAT on your behalf - Flat rate

Import Service Charge : GBP 20.00 Flat rate

Whether or not it is cost effective is something you will need to calculate.

You will have customs Duty & VAT to pay.

You do not need to be VAT registered, but you will need to apply for an EORI Number if your intention is to re-sell the product, again a straight forward process.

When discussing your purchase with supplier, be sure to insist on buying goods under terms FOB (Free On Board), and take control of the shipping and freight costs, this will be in your best interest.

You will need to appoint a freight forwarder to arrange the shipping from China to the UK.

With regards to the delivery, you can ask a freight forwarder for a proce or you can collect from their warehouse at or close to the port.

If you need any further details, let me know.

Kevin

 

[KWilding]

Hi Neil,

Yes, i am in the freight forwarding business, if you drop me a personal message, and i will give you full details and answer any other questions you may have.

Kevin