Importing Goods

[sanjiv]

I am thinking of importing goods from China.

What costs are involved apart from freight and cost of the goods?

What is the most secure way of payment? I don't want to end up being sent an empty container, so I need some sort of insurance or a reliable method of payment. Same applies for when I order a sample and it arrives by FedEx or other carriers.

What checks are there to make sure I am not being dealt with a conman? I have thought of checking out the companies certificate of incorporation, which does check out but it doesn't really stop them conning me.

Really appreciate all the help in advance.

Thanks

 

[wizzard]

Don't forget the import duty.

 

[sanjiv]

I was asking what the other costs are?
I know there is VAT and duty but these vary don't they?

Forgot to mention that I will be importing dehumidifers.

 

[wizzard]

Yes however I don't believe the VAT rate will change.

 

[sanjiv]

I heard that some goods had reduced VAT rates.

Are the costs just VAT and Duty? Do you know the rates for duty?

Thanks

 

[wizzard]

Yes they do, however I don't think de-humidifiers have reduced VAT.

 

[sanjiv]

Do you know the rates for Duty?
Got any tips for dealing with exporters for getting the best price and not getting conned?

Thanks

 

[wizzard]

Put the product you are importing in here:

http://ec.europa.eu/taxation_customs/dds/cgi-bin/tarquer?Lang=EN

And it'll give you the duty rate.

I don't have any tips for dealing with exporters.

 

[skyhi2]

Where did you source your supplier from ?

Skyhi2.

 

[sanjiv]

Thanks very much for that link.

I have been looking at suppliers at made-in-china.com

I think there are other website around too but I am yet to explore them.

 

[sanjiv]

Thank you for the link.

I sourced them from a website called made-in-china. Search for it in Google, it is top link. I cannot post links as a new user.
There are other websites which I am yet to explore.

 

[MASSEY]

There are a number of things you have to pay, they calculate your additions on what they retail for in this country so even if you get them real cheap they still sting you,

As to finding reliable sources in china you can employ organisations to check them out, how trustworthy they are i dont kno. If your thinking of spending a good few grand i would take a trip over there.

 

[sanjiv]

It is a good few grand however the time to go over there would be a waste of time because it is 2/3 the price there but I would rather pay full price here if I had to go there. It is not worth the time and effort to go over there for me.

That is the position currently anyway. I am contacting more suppliers and hopefully if I get a good enough price, to make it worthwhile, then I may take a trip over there.

Thanks for the tips

 

[Mister B]

It is a good few grand however the time to go over there would be a waste of time because it is 2/3 the price there but I would rather pay full price here if I had to go there. It is not worth the time and effort to go over there for me.

That is the position currently anyway. I am contacting more suppliers and hopefully if I get a good enough price, to make it worthwhile, then I may take a trip over there.

Thanks for the tips

Why is it not worth your time and effort?

If you're serious about developing a relationship and want to check quality and integrity, then it really is the best way forward.

If I were you, I would find three of four suppliers and go visit all of them to find which suits you best. Check out globalsources.com

Mister B

 

[sanjiv]

It won't be much of a long term relationship. It will be one big order and then smaller orders after the units break down.

About the quality and integrity, I would just order a sample.

 

[Wavecrest Ltd]

Hi Sanj - I am in shipping and forwarding and have helped several members on UKBF. If you need any advice regarding this aspect of your business, please feel free to contact me.

Glen

 

[sanjiv]

Thanks
I've PM'ed you

 

[jackmorris]

As mentioned before globalsource.com is a good site, as they check companys out and rate them for you, sending people to ensure they are reputible etc.
ALSO CHECK YOU DO NOT NEED CERTIFICATE OF ORIGIN TO IMPORT YOUR GOODS FROM CHINA, otherwise they may get held in customs.

 

[sanjiv]

Thanks very much for the advice Jack.

 

[Oz Qadir]

Apart from freight charges there's VAT and duty - both fixed and based on the invoice value of the goods you bought. If you are thinking of a FCL (full container load), you will have to account for transport from dock to your location, insurance, import documentation & port fees, unloading costs, storage costs.

Chinese manufacturers/exporters will usely ask for approx 40% of the invoice value in advance, and then the remainder when they submit the container for shipping in China. i.e you will have 100% of the invoice value about 28 days before the goods arrive in the UK.

In my experience, there are real risks that sometimes you will not receive exactly what you paid for or (b) goods arrived incomplete or damaged. Either way, you will have a problem to get your money back or replacement products sent foc. Your relationship with the manufacturer/exporter will make all the difference. I have personally heard of many instances when these type of purchases go wrong and even experienced business people who have been conned & have lost money.

The best way to do this tyoe of trade is to have someone in China you can trust 100% - they can take care of all of this i.e visit the manufacturer, make sure your goods leave the exporter in good condition (i.e complete, accurate, well packed etc etc). They can oversee the loading of the container. They can also find you a good freight forwarder locally in China so you get good rates.

Of course, many people also make successful trades without any hitch - I've just painted possible issues that you SHOULD worry about to make sure you don't lose money.

I own a company based in the UK and with offices in China and Hong Kong. We import a range of products from China into the UK. If you are interested to know more, perhaps we can help you - pm me.

 

[sanjiv]

Thanks for the tip mate. PM'ing now.

 

[Simply Business]

Good post of Oz Qadir!

I've been working in the promotional product business for over 5 years and we always used an agent in China to deal with the manufacturers. It's just too much risk to deal with a Chinese factory directly.

Working for a business insurance website now: please check your insurance before you start selling your products. Even experienced companies importing goods from China make mistakes (see this BBC coverage of Mattel).

 

[sanjiv]

How would insurance work? Like a monthly plan or a one off thing for a certain period like a warranty.

 

[Simply Business]

Product liability insurance usually a yearly premium. For importing goods, there are specialized insurance products available. If you are not sure, always call your broker (you can also call us).

 

[dwicker]

If you're purchasing from China and there's any doubt whatsoever about the integrity of the supplier and or shipping company, you should be using Letters of Credit
Here you will specify the goods
Require an inspection certificate
etc
before the supplier can receive his cash

Talk to your bank, ask for the Documentary Credits people

 

[Mister B]

One more thing...check your costings again. The caning that sterling is taking at the moment will severely affect your intake margin and oush up your costs.

Mister B

 

[sanjiv]

Thanks guys.

 

[yuansuhua]

Hello Sanjil,
how are you,Haveyou found the suppliers from china yet? I am Robin from china, i can help you with supplier audit and quality inspeciton, i am cooperating with some clients now, more informaiton about our work, you can contact me.

 

[sanjiv]

No not yet. I have received you PM.

 

[nowtie]

Hi
I'm new to the forum. Can someone tell me how Im supposed to start a new POST?!

Thanks, great start ; )

 

[E-wholesale]

You can ask CIF price, and you just need pay your local charge~~

 

[paulears]

Go to the section you want, not an individual topic, then there is a new topic button - it asks you for a title - and off you go.

The only problem I have with china sourcing is the minimum order quantity requirement. You can get modest numbers for an initial sample - but often at increased cost. My problem is that I want to stock a range, and only keep maybe 10-20 of each in stock. They want me to order 50 as a minimum of any single model, which isn't economic to do.

The one thing you should watch is CE marking and documentation. Proper CE marking is quite possible - BUT they are expert at producing documentation that isn't real. The other thing is CE marking that means "China Export" - and has the CE mark in slightly different fonts. So when you ask "is it CE marked?" the answer "yes" might not really mean yes at all!

Also - watch out for things like lamps being supplied in 220V versions - they burn out very quickly!

 

[skyhi2]

Paul,have you tried Ali Express ?

For smaller quantities,but you can still negotiate the hell out of em.

Agree with the CE mark,they are very clever at trying that one on.

Skyhi2.

 

[lilysong]

You use FOB price term and find yourself a shipping agent, so to get Master Bill. And before shipment, you also can ask some inspectors form Third party(inspection company) to do pre-shipment inspection or loading supervision at the factory to make sure the goods' quality and are well loaded.

 

[wholesalecity]

I am thinking of importing goods from China.

What costs are involved apart from freight and cost of the goods?

What is the most secure way of payment? I don't want to end up being sent an empty container, so I need some sort of insurance or a reliable method of payment. Same applies for when I order a sample and it arrives by FedEx or other carriers.

What checks are there to make sure I am not being dealt with a conman? I have thought of checking out the companies certificate of incorporation, which does check out but it doesn't really stop them conning me.

Really appreciate all the help in advance.

Thanks

usually only pay for freight and goods except the custom tax in your country
the most secure way is pay by Paypal.
find some companies that have existed for several years. never deal with a new company.

 

[Roline]

What kind of product do you want to import from China? Would you please tell us more here? Maybe we can provide you some useful infos.

 

[sanjiv]

I was going to import dehumidifiers however I don't think it is really a good idea unless I actually go over to China which I don't have time to do and the cost saving won't be significant enough to do so. I will probably get them at a similar price in the UK.

 

[wholesalecity]

you can search some companies have this kind of stuff online.
My company only sells female's clothing.
So i can't give you more information.
but you can try alibaba.com to search for a supplier.
it is quite famous in China

 

[wordperfect]

Hi Sanj, My first piece of advice is ignore the mindless comments suggesting Alibaba and paypal .

As has already been suggested, find a good research and vetting / audit company to do the leg work for you, preferably a UK based or managed operation with experience and background you can trust.
Avoid those China based unknowns that suddenly crawl out of the woodwork or those who post endless drivel to get their website promoted.

Although we do research and reference work, I am going to recommend Oz Qadir, as he posted, he has a China based service and can pretty much do everything for you except sit naked in the units to see how cold they get!!!

If you are only looking at a one off order then probably you are right, the cost of the trip is not worth it, but I would argue about Chinese factories cannot be trusted. That is not 100% true, it is not really the manufacturers that you need to watch but the middle people, so called "suppliers," often no more than bored housewives or students with an eye to a quick kuai.
We have noted a trend where Chinese factories are approaching us for guidance after local suppliers have damaged their name.
Cheating takes on all manner of faces here and Chinese factories are often equal victims.

Finally, again as someone has posted Global Resources is a fairly solid and reliable platform, they check their suppliers more thoroughly than Alibaba et all do.

Good luck

 

[sanjiv]

Thanks. I contact Oz Qadir however he was unable to beat the price that I can get them here for. THe product is exactly the same in B&Q but has been rebranded.

I will take a look at global resources.