Importing From India To Uk

[Nick Weigh]

Hello

I run a small e commerce business selling pre owned clothing online. Currently have a turnover of around 75k, sole trader and not VAT registered.

I was in India recently and came across a few wholesalers selling brand new branded clothing at very reasonable prices. I couldn’t believe it as I pay more from my wholesalers in the UK for second hand branded clothing than the cost of really nice top quality brand new clothing in India.

Unfortunately I can’t sell brand new branded clothing (specific brands like Lacoste, ralph lauren, Nike ect) without getting a license and going through the proper distribution channels, which on my budget and being a small sole trader business is very difficult to do. These brands tend to only deal with reputable ltd companies.

The entrepreneur in me had an idea, it might be a stupid one but I would like to get the opinion of some veterans in the business community before I go ahead and try.

I was thinking about cutting the tags off the clothes, not the labels inside, just the tags with the rrp price. These are all surplus items from factories, and I would sell them as used items online. The cost would be cheaper than what I pay in the UK and I can handpick each item individually, pick out in demand items as I know the market well. I don’t think I would face any issues with the brands as I’m already selling the same ones as used items.

I plan to take a trip to India every three months and pick out around 600kg of items for the beginning of each season, spring - summer - autumn - winter. If all goes well I could always start a LTD company get VAT registered and expand my operations.

As I have never imported before I’m a bit confused how it should be done and what the cost will be.

Do I need to use a shipping agent? On average how much would it cost to ship 600kg of clothing? As im a sole trader and not VAT registered, will I need to pay VAT. Do I need to pay import duty? How do they calculate the cost of all the taxes I need to pay. If these items don’t have the tag and are now classed as used, will the taxes be calculated using the value of what I paid for them or what they are worth once sold. Also, can I use the invoice I get from the Indian wholesalers to put in my self assessment tax return even though it will be in rupees, not pounds?

As I mentioned I have never imported before and it’s all a bit complicated. I know I can source the stock, I know I can sell the stock it’s just getting it to the UK that is a little bit confusing.

Thanks in advance to anyone who has taken the time to read this and a big thanks to anyone that can give advice, it’s much appreciated.

 

[James]

Hello

I run a small e commerce business selling pre owned clothing online. Currently have a turnover of around 75k, sole trader and not VAT registered.

I was in India recently and came across a few wholesalers selling brand new branded clothing at very reasonable prices. I couldn’t believe it as I pay more from my wholesalers in the UK for second hand branded clothing than the cost of really nice top quality brand new clothing in India.

Unfortunately I can’t sell brand new branded clothing (specific brands like Lacoste, ralph lauren, Nike ect) without getting a license and going through the proper distribution channels, which on my budget and being a small sole trader business is very difficult to do. These brands tend to only deal with reputable ltd companies.

The entrepreneur in me had an idea, it might be a stupid one but I would like to get the opinion of some veterans in the business community before I go ahead and try.

I was thinking about cutting the tags off the clothes, not the labels inside, just the tags with the rrp price. These are all surplus items from factories, and I would sell them as used items online. The cost would be cheaper than what I pay in the UK and I can handpick each item individually, pick out in demand items as I know the market well. I don’t think I would face any issues with the brands as I’m already selling the same ones as used items.

I plan to take a trip to India every three months and pick out around 600kg of items for the beginning of each season, spring - summer - autumn - winter. If all goes well I could always start a LTD company get VAT registered and expand my operations.

As I have never imported before I’m a bit confused how it should be done and what the cost will be.

Do I need to use a shipping agent? On average how much would it cost to ship 600kg of clothing? As im a sole trader and not VAT registered, will I need to pay VAT. Do I need to pay import duty? How do they calculate the cost of all the taxes I need to pay. If these items don’t have the tag and are now classed as used, will the taxes be calculated using the value of what I paid for them or what they are worth once sold. Also, can I use the invoice I get from the Indian wholesalers to put in my self assessment tax return even though it will be in rupees, not pounds?

As I mentioned I have never imported before and it’s all a bit complicated. I know I can source the stock, I know I can sell the stock it’s just getting it to the UK that is a little bit confusing.

Thanks in advance to anyone who has taken the time to read this and a big thanks to anyone that can give advice, it’s much appreciated.

Hello

I run a small e commerce business selling pre owned clothing online. Currently have a turnover of around 75k, sole trader and not VAT registered.

I was in India recently and came across a few wholesalers selling brand new branded clothing at very reasonable prices. I couldn’t believe it as I pay more from my wholesalers in the UK for second hand branded clothing than the cost of really nice top quality brand new clothing in India.

Unfortunately I can’t sell brand new branded clothing (specific brands like Lacoste, ralph lauren, Nike ect) without getting a license and going through the proper distribution channels, which on my budget and being a small sole trader business is very difficult to do. These brands tend to only deal with reputable ltd companies.

The entrepreneur in me had an idea, it might be a stupid one but I would like to get the opinion of some veterans in the business community before I go ahead and try.

I was thinking about cutting the tags off the clothes, not the labels inside, just the tags with the rrp price. These are all surplus items from factories, and I would sell them as used items online. The cost would be cheaper than what I pay in the UK and I can handpick each item individually, pick out in demand items as I know the market well. I don’t think I would face any issues with the brands as I’m already selling the same ones as used items.

I plan to take a trip to India every three months and pick out around 600kg of items for the beginning of each season, spring - summer - autumn - winter. If all goes well I could always start a LTD company get VAT registered and expand my operations.

As I have never imported before I’m a bit confused how it should be done and what the cost will be.

Do I need to use a shipping agent? On average how much would it cost to ship 600kg of clothing? As im a sole trader and not VAT registered, will I need to pay VAT. Do I need to pay import duty? How do they calculate the cost of all the taxes I need to pay. If these items don’t have the tag and are now classed as used, will the taxes be calculated using the value of what I paid for them or what they are worth once sold. Also, can I use the invoice I get from the Indian wholesalers to put in my self assessment tax return even though it will be in rupees, not pounds?

As I mentioned I have never imported before and it’s all a bit complicated. I know I can source the stock, I know I can sell the stock it’s just getting it to the UK that is a little bit confusing.

Thanks in advance to anyone who has taken the time to read this and a big thanks to anyone that can give advice, it’s much appreciated.

Hi Nick,

I don't know much about the retail side of your business. Quite a few of my customers use the below for estimating duty. Feel free to PM if you want a quote for the transport.

www.simplyduty.com​

 

[Customs Geek]

Hello

I run a small e commerce business selling pre owned clothing online. Currently have a turnover of around 75k, sole trader and not VAT registered.

I was in India recently and came across a few wholesalers selling brand new branded clothing at very reasonable prices. I couldn’t believe it as I pay more from my wholesalers in the UK for second hand branded clothing than the cost of really nice top quality brand new clothing in India.

Unfortunately I can’t sell brand new branded clothing (specific brands like Lacoste, ralph lauren, Nike ect) without getting a license and going through the proper distribution channels, which on my budget and being a small sole trader business is very difficult to do. These brands tend to only deal with reputable ltd companies.

The entrepreneur in me had an idea, it might be a stupid one but I would like to get the opinion of some veterans in the business community before I go ahead and try.

I was thinking about cutting the tags off the clothes, not the labels inside, just the tags with the rrp price. These are all surplus items from factories, and I would sell them as used items online. The cost would be cheaper than what I pay in the UK and I can handpick each item individually, pick out in demand items as I know the market well. I don’t think I would face any issues with the brands as I’m already selling the same ones as used items

These sound like they may be illegal overruns or unauthorised production or fakes as brands do not normally let factories sell off surplus. Most of the big brands also have intellectual property markers registered with customs to pick up unregulated imports of their products. You may be ok but it can’t be guaranteed.

I plan to take a trip to India every three months and pick out around 600kg of items for the beginning of each season, spring - summer - autumn - winter. If all goes well I could always start a LTD company get VAT registered and expand my operations.

You don’t need to be a limited company to register for VAT. You can voluntarily register as you are still under the £90,000 threshold, which may be useful as you would be able to recover the import VAT.

As I have never imported before I’m a bit confused how it should be done and what the cost will be.

Do I need to use a shipping agent?

Yes I would recommend using a customs agent as the import declaration is very difficult to do yourself. Phone a few and check their rates.

On average how much would it cost to ship 600kg of clothing? As im a sole trader and not VAT registered, will I need to pay VAT. Do I need to pay import duty? How do they calculate the cost of all the taxes I need to pay.

Import VAT is applicable to all imports whether you are VAT registered or not.
Yes you will almost certainly pay import duty . Clothing is 12%
You will need to identify the commodity codes for the goods to be declared to customs.
www.gov.uk/trade-tariff
There is possibility of a reduced duty from India but you must have the correct proof of Indian origin from the factory/ exporter.

If these items don’t have the tag and are now classed as used, will the taxes be calculated using the value of what I paid for them or what they are worth once sold.

Import duty is based on the cost of goods plus the cost of freight.
Import VAT is charged on the cost of goods plus freight plus duty.

Also, can I use the invoice I get from the Indian wholesalers to put in my self assessment tax return even though it will be in rupees, not pounds?

As I mentioned I have never imported before and it’s all a bit complicated. I know I can source the stock, I know I can sell the stock it’s just getting it to the UK that is a little bit confusing.

www.gov.uk/import-goods-into-uk

 

[Nick Weigh]

These sound like they may be illegal overruns or unauthorised production or fakes as brands do not normally let factories sell off surplus. Most of the big brands also have intellectual property markers registered with customs to pick up unregulated imports of their products. You may be ok but it can’t be guaranteed.

Thanks for your reply. Some of the wholesalers I use in the UK are already importing branded and vintage clothing from India but they are used. I was thinking if I cut the tags off and declare the items as used I will be in the same position as my wholesalers so should be ok?

I’ve become an expert at spotting fakes as I’ve sold over 10k units already. I know how to check for authenticity.

I couldn’t get much info from the wholesalers in India with regards to their supply chain but yes, you are right, they are probably over runs or un authorised. Can’t really blame the factories for making extra and selling out the back door as these brands pay them peanuts to manufacture so they have to make some extra to make any real money I suppose.

Could be risky when they pass through customs as the items will look new. When my wholesalers orders pass through customs all of the items going through will look pre owned and show signs of wear.

Maybe this is a silly idea, maybe it’s a possible gold mine, I’m still unsure. I do appreciate your input, thank you.

 

[Tushar k]

Hello

I run a small e commerce business selling pre owned clothing online. Currently have a turnover of around 75k, sole trader and not VAT registered.

I was in India recently and came across a few wholesalers selling brand new branded clothing at very reasonable prices. I couldn’t believe it as I pay more from my wholesalers in the UK for second hand branded clothing than the cost of really nice top quality brand new clothing in India.

Unfortunately I can’t sell brand new branded clothing (specific brands like Lacoste, ralph lauren, Nike ect) without getting a license and going through the proper distribution channels, which on my budget and being a small sole trader business is very difficult to do. These brands tend to only deal with reputable ltd companies.

The entrepreneur in me had an idea, it might be a stupid one but I would like to get the opinion of some veterans in the business community before I go ahead and try.

I was thinking about cutting the tags off the clothes, not the labels inside, just the tags with the rrp price. These are all surplus items from factories, and I would sell them as used items online. The cost would be cheaper than what I pay in the UK and I can handpick each item individually, pick out in demand items as I know the market well. I don’t think I would face any issues with the brands as I’m already selling the same ones as used items.

I plan to take a trip to India every three months and pick out around 600kg of items for the beginning of each season, spring - summer - autumn - winter. If all goes well I could always start a LTD company get VAT registered and expand my operations.

As I have never imported before I’m a bit confused how it should be done and what the cost will be.

Do I need to use a shipping agent? On average how much would it cost to ship 600kg of clothing? As im a sole trader and not VAT registered, will I need to pay VAT. Do I need to pay import duty? How do they calculate the cost of all the taxes I need to pay. If these items don’t have the tag and are now classed as used, will the taxes be calculated using the value of what I paid for them or what they are worth once sold. Also, can I use the invoice I get from the Indian wholesalers to put in my self assessment tax return even though it will be in rupees, not pounds?

As I mentioned I have never imported before and it’s all a bit complicated. I know I can source the stock, I know I can sell the stock it’s just getting it to the UK that is a little bit confusing.

Thanks in advance to anyone who has taken the time to read this and a big thanks to anyone that can give advice, it’s much appreciated.

Hi Nick, i live in Uk but i am from India and planning to start exporting business from India to Uk. Seems like you’re idea is different but if you are interested in Importing clothing from India and selling it to UK, we can talk. My Email - [email protected]

 

[Kixoponev]

I wish you good luck with this!