Wholesaler or manufactuer if importing?

Dentz

Free Member
Jan 3, 2013
7
2
We are looking to import furniture from China to the UK and assumed by doing this that we would be classified as a wholesaler. However, we have read that "in the US, Europe and Australia the importer is considered the manufacturer and bears all criminal and civil liability".

Is this the case? And if so, would it be wise to take out PI insurance (or would this be wise anyway?!)? Also, are we entitled to create a "manufacturers brand"?

Any help would be greatly appreciated.
 
why don't u import from India..?
Firstly, rehber's suggestion gives food for thought. Personally I would try Vietnam first, and there are other countries also that may provide better value for money.

What you have read about liability is quite correct. Insurance is a matter of choice, but I would not be without it.

Many of the big brand products are regarded as having been manufactured by that brand owner, but are sometimes the product of several different factories. If you have bespoke products manufactured for you, you are still the manufacturer, not a wholesaler.

I would urge caution in the way you locate suppliers. Many of the web portals that have large numbers of suppliers listed take little or no care to ensure the genuineness of those suppliers. Before using a sourcing site, it may be worth checking ripoffreport.com, a US website. You can search the name of the sourcing site and see what if any complaints have been made about that site.

Bear in mind that complaints may not all be genuine, but the number and nature of the complaints may provide some indication of a sourcing site's reputation. One of the very big names in sourcing generates many complaints.

Once you find what you think is a good prospective supplier you must do thorough due diligence.
 
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GraemeL

Free Member
  • Sep 7, 2011
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    Cambridge, UK
    We are looking to import furniture from China to the UK and assumed by doing this that we would be classified as a wholesaler. However, we have read that "in the US, Europe and Australia the importer is considered the manufacturer and bears all criminal and civil liability".

    Is this the case? And if so, would it be wise to take out PI insurance (or would this be wise anyway?!)? Also, are we entitled to create a "manufacturers brand"?

    Hello Paul,

    as Importer, you are in effect the Manufacturer and all liabilities are yours. So yes, you must have Public and Product liability insurance. (I use Lockyer, a UKBF member)

    As for branding, you can brand your products in any way you want - including one the packaging of course. Just do a check in the UK to make sure you are not treaging on others toes.

    Good luck,

    G
     
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