Importing from China to UK

How tricky is it?

[Phil_C]

I'm looking to retail a product in the UK that is manufactured in abundance in China where (obviously) it's a lot cheaper than the UK.

Having looked at sites like Alibaba.com, they make it quite easy to communicate with various manufacturers and to obtain prices, but when it comes to shipping and import regulations I would imagine things start getting a little complicated.

Has anyone here had experience in the area?

[karnb]

nightmare , too many taxes

[robjones2]

You'd have to pay VAT on goods (if they qualify) on import, and also Duty (on some class of goods).

Obviously if you're VAT registered, you can claim that back.

You should allow for the above when calculating whethere it is "cheaper" bringing the stuff in from HK/China.

Also, if its electrical goods, you should check the langauge of the product/manual, the power supply compatibility, and whether the manufacturer would honour the warranty.

Best thing to do is get a shipping agent to handle it all for you. They'll charge you a fee, but its not too high and they'll do all the paperwork (which is quite complicated!), VAT/duty payment and deliver the goods to your door.

[Phil_C]

I am VAT registered, so that's not a problem.

The product falls under the textiles category so in theory there shouldn't be the complications that there could be if dealing with electrical goods.

How does one find a good import/export agent?

[OlRedEye]

Don't know if you are aware of the dispute between China and EU (as well as US) going on currently re the textile imports. Looks like it'll end in some heavy levies/taxation, so I'd hold off for a while and see after the dust settles.

[robjones2]

Try searching for "customs clearance agents" in google-uk.

Some of the larger shipping companies have departments that do this, otherwise there are lots of smaller specialist agents.

Your local VAT office should also be able to give you a list.

If its textile products and you're sure you can sell them, and you're brave, then think about getting over as many container loads as you can before the duties increase -as phil_c has said.

[robjones2]

btw, although you claim your VAT back, you cant claim back the Duty. beware.

[Phil_C]

Thanks for the info guys...

Well I knew stuff from China was cheaper, but the quotes so far have amazed me. Something that I retail for £8.00 in the UK (and purchase for not a lot less), can be manufactured for 20p! I never realised the margins for the middle men were so high.

[meg8]

I get newsletters from the Hong Kong Trade Council. They seem to act as a gateway for organising exports, they would pronbably have some information you be interested in. The downside is that they seem to sell their list and I now get what I presume to be information about Chinese companies. Howver it's all in Chinese so I don't worry too much about it.

Meg

[johnhh]

I've actually done this for textiles via air freight. Once the goods arrive and cleared customs ( use a shipping agent for this ) you have to pick up or arrange transport. VAT and duty is payable - normally the shipping agent pays this but they may ask you for cash/cheque the first few times around.

If you are doing a lot you can have a VAT deferment account set up - basically a line of credit, which may need a bank quarantee, and you pay Customs monthly in arrears( if I remember rightly). The deferment has a limit set so if the value of VAT and duty payable goes over this in a month you have to pay up to the agent. Most agents have their own deferment account with Customs.

Interestingly Customs don't accept cash (!) tried that once when we over the deferment limit.

The margins you quote are a bit high I would reckon on 100% markup for the UK after import duty.

[johnhh]

Oh forgot to mention - if its just one item mark them as "samples" - no duty if I recall correctly.