Questions on how to handle imports from India

[V Narayan]

Hi Everyone,

So we are starting a company in the UK which are based on home textles. I am trying to figure out how to do my shipping and whether i would need a import license to do the same.

1. All our items are home textiles items and its packaging.
2. Our first order is small in quantity - may be around 1200 untis so it might be air freight. So I am assuming that the courier company would clear the order from the customs and will deliver for me. I might be charged for VAT +duty I assume. I know its an expensive affair, please tell me is there any workaround for it.
3. We are also getting our second order by shipping - i wanted to understand how it works? Is there any import license i need to get and how it get cleared from customs? what is the process? If I go to a frieght forwarder - will they help me set up a license and other formalities, are there any agents who can help me set this up?

Any advice would be much appreciated.

 

[Mr D]

You will be charged VAT and duty if appropriate. One way or another presume that.
Workaround? Sure. And considerable penalties when caught evading taxes. Probably information out there about how to evade the VAT and duty - information read by the tax authorities too.

3 - what shipping? Air freight or by ship?
Deal with a shipping agent to get stuff from place to place - they can arrange everything to get it to your door from the supplier. Lots of shipping agents around, we are a group of islands.

 

[V Narayan]

You will be charged VAT and duty if appropriate. One way or another presume that.
Workaround? Sure. And considerable penalties when caught evading taxes. Probably information out there about how to evade the VAT and duty - information read by the tax authorities too.

Mr D, sorry I didnt mean to evade tax and duty , I am going to start an ethical brand, last thing on my mind is that . I wanted to understand the charges of customs and is it better to do a single shipment or multi shipment. My company is not VAT registered as I am doubtful about the 85K thing. So wanted to avoid paying less from my pocket - if that means i can ask the supplier to ship in multiple batches and i can cost accordingly.

 

[V Narayan]

3 - what shipping? Air freight or by ship?
Deal with a shipping agent to get stuff from place to place - they can arrange everything to get it to your door from the supplier. Lots of shipping agents around, we are a group of islands.[/QUOTE]

By ship - because the supplier has the option to ship to me and volume would be larger and it would be cheaper. So hence my question is, should I have to get an import license for my company or should i just get a shipping agent - who will sort everything for me.

 

[Mike Godwin]

First you need to establish whether or not the goods you're importing need an import licence. You can either find this out from the gov.uk website or work with a freight forwarder who will help you with this. Duty & VAT is payable upon importation based on the landed value of the goods and a freight forwarder can arrange this for you along with customs clearance if required. A UK based freight forwarder can also arrange your shipment from collection point to delivery point at an agreed cost if you like subject to the terms of sale you've agreed with the seller.

 

[Vardan 89]

Hi Narayan,

If you are looking for a long term business, I recommend to register for VAT.

Who is your end customer ? If it is a retail buyer online then it is fine but if you plan to sell to other businesses then there are chances that they will ask you for a VAT invoice and if you are not VAT registered than there are chances that they may not buy from you as that will increase their cost by 20% VAT that you had paid at the time of import and included in your selling price.

Also if you are VAT registered then any VAT paid at the time of import can be offset with the VAT you collect from your customers.

If I may ask, whereabouts from India are you planning to import? I am in Ahmedabad, Gujarat,

Let me know if I can be of any help.

Darshan