Importing goods from China - newbie advice

[newskincarebiz]

I need to order 1,000 cosmetic bottles from China. Because it's a low MOQ the price for these is initially quite high (they're custom printing for me). The price is working out at USD1/bottle.

The factory estimates that the parcel will weigh in the region of 150kg.

They have quoted me (today, appreciate that shipping costs fluctuate massively) anything from USD 1109 for express air shipping, 10 days. Option 2 is by sea, 2 months USD570. Option 3 by rail 45 days and USD617.

I'm staggered that air shipping could cost just as much as the order itself. Kind of makes it uneconomical, may even be better looking at Europe but that's another matter and not the purpose of this thread.

The factory today asked if I had considered customs. I'm looking into that at the moment. I am lost when it comes to working out the code, and whether VAT would be due. Please can someone point me in the right direction. I want to factor in the customs cost now but I'm really at a loss how I do that. I'm simply importing empty cosmetic glass bottles.

 

[SillyBill]

Shipping stuff halfway across the world is expensive hence why a lot of "low value" products are taken in very large quantities by UK traders/buyers to get their cost per unit down. Only way it becomes economical sometimes, not unusual albeit shipping costs are v. high at present.

We're an established business in import and export and some of the best value pounds we spend IMO is on trusted freight forwarder partners & customs agents to handle this side of the business. We focus on running the business then. It is a minefield if you are new to it, I'd suggest you hook up with someone who for a fee can handle it for you. Even if you'd like to do more yourself in future, not a bad idea to learn the process with someone holding your hand for a transaction or two. Experience comes at a price as they say.

 

[newskincarebiz]

@SillyBill That's precisely what I've been googling tonight! Can you recommend anyone?

 

[MOIC]

A few questions:

1. What's the dimensions and weight of each carton?

2. What province is the supplier located at?

3. Are your terms with the supplier EXW or FOB?

4. Have you tested the tops of the bottles to ensure no leakages on the production run?

5. Have the bottles been packaged to protect against any breakages during shipping?

 

[MOIC]

The factory today asked if I had considered customs. I'm looking into that at the moment. I am lost when it comes to working out the code, and whether VAT would be due. Please can someone point me in the right direction. I want to factor in the customs cost now but I'm really at a loss how I do that. I'm simply importing empty cosmetic glass bottles.

You'll have to pay VAT on the total product cost plus the shipping fee.

To find out about any Duty payable, check the following link:
https://www.gov.uk/trade-tariff

 

[newskincarebiz]

Yes thanks, I did a fair bit of research last night. The supplier is trying to tell me that there will be no duties or taxes due in the UK, I cannot see how that is possible!? Surely the VAT bill will fall at my feet once they arrive in the UK.

 

[MOIC]

Are the Incoterms DDP (Delivered Duty Paid)?