Trying to understand importing from China

[Rolypoly]

So I know this is probably one of the most talked about things on this forum but I wanted to start a thread of its own so I can understand where I stand in my personal terms.

Im interested in importing party supplies and fancy dress from China. I have a supplier in mind in which has been recommended to me from someone within the industry, and have done some of my own research on them. I think I understand the actual 'buying' process, but what I really cant get my head around is the 'importing', or delivering process.

I've never imported anything before, and dont personally know anyone who has to ask for advice, so my knowledge is limited on the subject. Even when I try to research, I still confuse myself on the subject.

A couple of things I'd like to know are:

Can I get the supplier to sort out all the delivery work, e.g door to door, or will they only sort out the shipping of the item out of the country?

How do I pay the fee's, taxes etc that come with importing? Will I get an automatic bill sent to me, or will I need to declare these things myself?

What is a 'Economic operator registration and identification number, and will I need one of these to import?


As I have said, Im looking at fairly small and light products to import, not furniture, cars etc which a lot of what I have researched importing is based on. Im not sure if by importing these types of things differs from large, big order and expensive products.

As well as this, I dont intend to import a large amount. Ive looked at some potential orders, and in terms of fancy dress, I'd be looking at an intitial 30 costumes which would be in the region of £110. Would this make a difference to delivery costs?

As you can see, I really dont have a clue, which is why I havent taken the next step and contacted the supplier yet.

If anyone can help or if anyone knows of any blogs, websites which provide some information on the subject, that would be brilliant.
Thanks in Advance
Dan.

 

[Cambridgeshire Website Design]

I know british wholesalers can be a right pain sometimes but if you are not buying in huge quantities you may find they can offer competitive prices.

Sorry I cant be more help, best of luck.

 

[Directimport]

Hi Dan,

My replies are in blue.
So I know this is probably one of the most talked about things on this forum but I wanted to start a thread of its own so I can understand where I stand in my personal terms.

Im interested in importing party supplies and fancy dress from China. I have a supplier in mind in which has been recommended to me from someone within the industry, and have done some of my own research on them. Bear in mind the supplier recommended may be the best or may be the worst. You should look further at least to satisfy yourself that you are getting a good deal and a good supplier. I would never buy on the basis of a quote from one supplier. I think I understand the actual 'buying' process, but what I really cant get my head around is the 'importing', or delivering process.

I've never imported anything before, and dont personally know anyone who has to ask for advice, so my knowledge is limited on the subject. Even when I try to research, I still confuse myself on the subject.

A couple of things I'd like to know are:

Can I get the supplier to sort out all the delivery work, e.g door to door, or will they only sort out the shipping of the item out of the country? For the small quantities you intend buying, I would suggest that you do get the supplier to quote you door to door. I and my former franchisees did this successfully for 22 years.

How do I pay the fee's, taxes etc that come with importing? Will I get an automatic bill sent to me, or will I need to declare these things myself? If delivery is arranged door to door, that will be automatically done for you.

What is a 'Economic operator registration and identification number, and will I need one of these to import? All importers must obtain an EORI. This is simply a number that identifies your business and simplifies the clearance process.


As I have said, Im looking at fairly small and light products to import, not furniture, cars etc which a lot of what I have researched importing is based on. Im not sure if by importing these types of things differs from large, big order and expensive products. Some of the items you mention are likely to have more bulk than weight, so you should be quoted delivery charges based on volume, although this may be referred to as cubic weight.

As well as this, I dont intend to import a large amount. Ive looked at some potential orders, and in terms of fancy dress, I'd be looking at an intitial 30 costumes which would be in the region of £110. Would this make a difference to delivery costs? All the more reason to have your supplier quote door to door. Freight could be costly because of the volume. See previous paragraph.

As you can see, I really dont have a clue, which is why I havent taken the next step and contacted the supplier yet.

If anyone can help or if anyone knows of any blogs, websites which provide some information on the subject, that would be brilliant. Sorry, I am not allowed.

Regards,
Walter

 

[nickbass]

A couple of things I'd like to know are:

Can I get the supplier to sort out all the delivery work, e.g door to door, or will they only sort out the shipping of the item out of the country?
-----Yes, of course you can let the supplier to be in charge of the whole logistics process, and they will include all the shipping cost when offering the quotation. Of course, you can also let them only in charge of the domestic part's shipping. All is just based on your negotiation and come to an agreement.

How do I pay the fee's, taxes etc that come with importing? Will I get an automatic bill sent to me, or will I need to declare these things myself?
-----The fee include: product cost (base on the contract with your supplier), shipping cost (may need to pay if your supplier is not in charge of this), Import VAT (you can claim back from UK government), VAT when selling your product out (included in your product's price). If you ask for door to door, there will be automatic bill sent to you.

What is a 'Economic operator registration and identification number, and will I need one of these to import?
----- Yes! You need!

As I have said, Im looking at fairly small and light products to import, not furniture, cars etc which a lot of what I have researched importing is based on. Im not sure if by importing these types of things differs from large, big order and expensive products.
----- This kind of product is popular. There is no big difference. The only point I can see is that the logistics cost will cover a comparatively higher percentage in your total cost. China is the largest exporting country of this kind of product.

As well as this, I dont intend to import a large amount. Ive looked at some potential orders, and in terms of fancy dress, I'd be looking at an intitial 30 costumes which would be in the region of £110. Would this make a difference to delivery costs?
------ No big different. Just based on your volume and the logistics service you choose.

As you can see, I really dont have a clue, which is why I havent taken the next step and contacted the supplier yet.

If anyone can help or if anyone knows of any blogs, websites which provide some information on the subject, that would be brilliant.
------I am Nick in China, if you need more help pls let me know. I also appreciate if you can give me a list of product you are looking for, may be I can handle for you in China! You can contact me by sending me a private message.

 

[Frankngai]

Hello Dan,

My reply is in red word as below. Hope thiw will be helpful for you.

Can I get the supplier to sort out all the delivery work, e.g door to door, or will they only sort out the shipping of the item out of the country?
Frank: Sure. You can ask the supplier to work based on door to door.

How do I pay the fee's, taxes etc that come with importing? Will I get an automatic bill sent to me, or will I need to declare these things myself?
Frank: The cost includes product's cost + insurance + freight + import duty + VAT + Customs & relative handling charge + local delivery charge.


What is a 'Economic operator registration and identification number, and will I need one of these to import?
Frank: Sure. You need obtain a EORI No. and VAT registered.


As I have said, Im looking at fairly small and light products to import, not furniture, cars etc which a lot of what I have researched importing is based on. Im not sure if by importing these types of things differs from large, big order and expensive products.
Frank: No big difference. The procedure is almost the same.


As well as this, I dont intend to import a large amount. Ive looked at some potential orders, and in terms of fancy dress, I'd be looking at an intitial 30 costumes which would be in the region of £110. Would this make a difference to delivery costs?
Frank: For small quantity, you can consider to having them sent by express i/o by sea or air. Even the express is high, the handling charge of shipment by sea & air is also quite high for such small quantity.

B. rgds,
Frank

 

[Rolypoly]

Just a quick reply to thank everyone for their brilliant help!

Just another quick question, does 'DAP' mean door to door? or would 'CIF' mean door to door? These words have come up quite a lot while researching, so just wanted to make sure I knew exactly what they mean.

As well as that, how difficult would it be to obtain a 'Economic operator registration and identification number'? Would I need to provide any business details?

Thankyou once again to everyone!

 

[nickbass]

DAP does not mean door to door, just a term means about the place of delivery......

CIF is just a term of the responsibility of the cutting point....

Just a quick reply to thank everyone for their brilliant help!

Just another quick question, does 'DAP' mean door to door? or would 'CIF' mean door to door? These words have come up quite a lot while researching, so just wanted to make sure I knew exactly what they mean.

As well as that, how difficult would it be to obtain a 'Economic operator registration and identification number'? Would I need to provide any business details?

Thankyou once again to everyone!

 

[Directimport]

DAP stands for Delivered At Place, and the place is named. Most commonly used when delivering to the buyer's destination. When DAP is the term of trade, it means that the supplier is responsible for freight to the place named, and also is responsible for all risks to that point. It does not include Customs Clearance costs.

CIF stands for Cost Insurance & Freight, and is similar to DAP except that the supplier is responsible for freight and insurance to the port of arrival, not to the buyer's destination. Like DAP this does not include Customs Clearance costs.

For other terms, see the sticky: What shipping terms such as CIF and FOB mean and the pros and cons

 

[Frankngai]

I personally think you can DDP for door to door service. DDP means delivered duty paid.

CIF means cost, insurance & freight to the port of destination. You need to clear the customs at your end, pick up the goods and ship to your address.

 

[Directimport]

I personally think you can DDP for door to door service. DDP means delivered duty paid.

The only type of suppliers I know of who will quote DDP are online retailers. WWE referred to on another post is a good example.

If you want to buy commercial quantities the best thing to do is go direct to the manufacturers.

 

[Wavecrest Ltd]

For the quantity you are talking about at the minute ask your supplier to send the goods by courier to your door with DHL/UPS or someone similar. The courier company will take care of the customs clearance in the UK on your behalf and bill you the appropriate duty and VAT.

To apply for an EORI is quite straightforward. You have to complete an application form and submit it with supporting documents to HMRC. We would be able to help you with this.

As and when you move on to larger quantities you would be better off arranging shipping by sea freight. We always recommend that you buy on FOB terms. This means the Chinese supplier quotes a price including delivery to a named port in China (e.g. Ningbo, Shanghai etc).

You would then be able to get an inclusive quotation for shipping from a UK based freight forwarder.

Hope this helps.

Glen

 

[Directimport]

For the quantity you are talking about at the minute ask your supplier to send the goods by courier to your door with DHL/UPS or someone similar. The courier company will take care of the customs clearance in the UK on your behalf and bill you the appropriate duty and VAT.

To apply for an EORI is quite straightforward. You have to complete an application form and submit it with supporting documents to HMRC. We would be able to help you with this.

As and when you move on to larger quantities you would be better off arranging shipping by sea freight. We always recommend that you buy on FOB terms. This means the Chinese supplier quotes a price including delivery to a named port in China (e.g. Ningbo, Shanghai etc).

You would then be able to get an inclusive quotation for shipping from a UK based freight forwarder.

Hope this helps.

Glen

I agree with Wavecrest about using door to door courier service for small shipments.

Moving to sea freight may or may not be the next step for larger shipments.

See my post #24 in Importing from China for the first time ? This might help.

It is also worth remembering that while at this end we understand FOB,
in my long experience importing from China I have found that many suppliers either do not understand, or pretend to not understand FOB.

Consequently they will sometimes state FOB when they are really offering EXW. (Ex Works). This could cost you a lot of money in inland charges in China. You must ensure that this point is mutually understood and in writing.

 

[Wavecrest Ltd]

Quite right what you say about our Chinese friends not knowing the meaning of Incoterms. We have run up against that problem occasionally too.

Overall though in our experience if goods are sold FOB we can ship them to the UK cheaper overall than if they are sold CIF and the importer is clobbered with umpteen additional surcharges this side (e.g. China Import Service Fee, Exchange Rate Additional etc)

Glen

 

[amac]

For the quantity you are talking about at the minute ask your supplier to send the goods by courier to your door with DHL/UPS or someone similar. The courier company will take care of the customs clearance in the UK on your behalf and bill you the appropriate duty and VAT.

To apply for an EORI is quite straightforward. You have to complete an application form and submit it with supporting documents to HMRC. We would be able to help you with this.

As and when you move on to larger quantities you would be better off arranging shipping by sea freight. We always recommend that you buy on FOB terms. This means the Chinese supplier quotes a price including delivery to a named port in China (e.g. Ningbo, Shanghai etc).

You would then be able to get an inclusive quotation for shipping from a UK based freight forwarder.

Hope this helps.

Glen

Great advice Glen. I am thinking about moving towards sea freight but there's a ton of considerations first.

 

[enous]

[FONT=verdana, geneva, lucida, arial][/FONT]Frankngai reply your question very well, if need any further help can PM me.LOL