Importing Vending Machines from China

[teabuzz]

Hi, we're planning to import vending machines from china. Manufacturer is ok with the FOB terms and happy to offer the door to door service. Do I still need to appoint a local agent? Does the FOB terms usually include import duty? If yes, then any additional fees the importer may remain liable for? What documents we should ask from the exporter? How do ensure the FOB terms? what kind of license we need apart from EORI number to import?

 

[Customs Geek]

This is a thread from over seven years ago . I suggest you start a new thread When you have a new question.

if you are agreeing FOB Incoterms this means ‘free on board’ , FOB means goods are put on a ship ( it can only be used for sea freight ) cleared for export in the country of dispatch. FOB is best used to get a cost for goods without any shipping or import clearance costs.
That is very different to your expected door to door cost which has no real meaning in international trade.
Under FOB you the buyer are responsible for all costs including shipping and insurance from China. FoB does not include any import clearance so you will be responsible for finding and paying for a customs clearance agent and paying any import duties and import VAT In the UK.

If you are VAT registered that import VAT can be accounted for in your VAT return.

I suggest you get a very real cost from your supplier with exactly what is included otherwise you may find there are lots of unexpected costs.

Unless the Chinese has a UK business entity it is highly unlikely that they can legally import into the UK themselves.

 

[teabuzz]

This is a thread from over seven years ago . I suggest you start a new thread When you have a new question.

if you are agreeing FOB Incoterms this means ‘free on board’ , FOB means goods are put on a ship ( it can only be used for sea freight ) cleared for export in the country of dispatch. FOB is best used to get a cost for goods without any shipping or import clearance costs.
That is very different to your expected door to door cost which has no real meaning in international trade.
Under FOB you the buyer are responsible for all costs including shipping and insurance from China. FoB does not include any import clearance so you will be responsible for finding and paying for a customs clearance agent and paying any import duties and import VAT In the UK.

If you are VAT registered that import VAT can be accounted for in your VAT return.

I suggest you get a very real cost from your supplier with exactly what is included otherwise you may find there are lots of unexpected costs.

Unless the Chinese has a UK business entity it is highly unlikely that they can legally import into the UK themselves.

Thanks, does the process apply to even for one sample unit?

 

[Customs Geek]

UK customs procedures apply to all imports There are however slightly different procedures depending on the means of transport the goods arrive in the UK. You need to know how you or your supplier is going to transport the goods.
if the goods are coming via courier then they also act as a customs agent.

The point is that unless you fully understand what the price you are paying includes, you could be in for some nasty surprises. There are several threads on the forum that highlight some of the problems that can happen if you are unaware of costs and customs requirements in the UK. Your supplier is highly unlikely to care once they have sold to you.

There are duty reliefs if claimed on true samples and meet the conditions set out by HMRC.
www.gov.uk/guidance/pay-no-import-duty-and-vat-on-importing-commercial-samples

 

[WaveJumper]

Before you even begin to think of shipping, how sure are you these machines will meet your requirements and are UK compliant, there’s been many a thread on here where people have gone to the expense of importing machinery etc only to find its not up to scratch.

Have you been out there to check and see the product in person

 

[Paul Kelly ICHYB]

Manufacturer is ok with the FOB terms and happy to offer the door to door service

This indicates that you do need to use a freight forwarder/import logistics company

how sure are you these machines will meet your requirements and are UK compliant,

VERY IMPORTANT!