Many of you will choose to import goods from abroad (outside the European Union). If and when you do, it’s essential to fully understand how importing works; what extra costs are involved, time frames for delivery etc.
For many new traders, Importing sounds like a nightmare to go through. But in fact, it’s not that complicated at all IF you know the basics behind the importing process – payment, shipping, taxes and customs. In this blog post I’ll try to cover most of the important aspects of importing from China and other countries outside the EU.
What does “importing” mean?
In general, importing means that you’re buying goods from a supplier outside your country. However, in my examples I won’t be counting European Union countries as goods can be freely moved across the EU without paying extra import duty or VAT. For most of you, China and the United States will be the top two countries to import from, so let’s cover them in detail.
Shipping Methods
Shipping costs will make up a substantial percentage of your total product cost, so it’s important to keep them as low as possible at all times. As a general rule of thumb, the bigger your order, the lower ‘per item’ shipping costs you’ll face. There’s no point in importing one pair of unbranded shoes from China as the shipping costs will be far more than the cost of the product itself. Volume is the key to success when building your eBay business around an “Importing from China” product sourcing concept. But that doesn’t mean you have to start off with full container loads either!
Here are the 4 most popular shipping methods you can use to import goods from China:
1) Regular Post. This means normal, regular China Post which can take up to 6 weeks to arrive. No online tracking is provided. It can be used for parcels under 2kg. Usually, you will only use regular post for samples and again ONLY if time is not that important and you can afford to wait a few weeks for a package to arrive. China Post is not the most reliable system so be prepared for lost/stolen packages.
If at all possible, I try to avoid using China Mail for any shipments as the delivery time is simply too long.
If your supplier is located in Hong Kong, you can use HK Airmail which is way more reliable, comes with a tracking number and usually arrives within 5-10 days.
2) Courier. Shipping with a courier company will be the most suitable method for most people starting out IF it involves small, lightweight items. With courier companies such as TNT, DHL, UPS or FedEx you pay a premium price for each kilo BUT you get fast delivery times and an online tracking facility. These days most courier shipments take just 3-5 business days to arrive in any Western country from anywhere around the globe. I personally use TNT and DHL most of the time as their prices have worked out lowest for me. For a 50kg package, expect to pay around £4 or £5 per kilo.
3) Air Freight. This is somewhere between courier shipping and sea freight. Shipping times vary from company to company, but in general range between 5 to 10 days which is not bad at all! With Air Freight costs will be significantly lower than with courier companies, but extra work is involved when the goods arrive in your destination country. With Air Freight you’ll usually have to handle documentation and customs clearance on your own (unlike with courier companies), which for many newbies may seem impractical. Of course, you can always outsource these tasks to a freight forwarding company at an additional cost.
With Air Freight, expect to pay £2-£3 per kilo for a 100kg shipment.
Air Freight is usually cost effective once shipments are in the range of 100kg or more UNLESS very bulky items are involved; if that’s the case your only viable option is to use Sea Freight.
4) Sea Freight. This is the most popular shipping method used by big companies to import goods from China. The cost per kilo (£100-£150 per pallet, even less if you can order full or half-container loads) is very low but the downside is the lengthy delivery time. Depending on where you’re located it will be in the vicinity of 30 to 40 days in most cases.
Just like with Air Freight, you’ll have to take care of the documentation, customs clearance and delivery of goods from the port to your home or office. It’s not that complicated to be honest – I do this on my own on a regular basis, but I understand that for newbies it could seem too complicated and that’s why I recommend using a freight forwarding company that will take care of all the procedures and deliver goods right to your door.
Also, with Sea Freight it’s very important to calculate all the EXTRA COSTS involved once the goods arrive in your country. Your supplier will usually give you the FOB price, which means that the goods are loaded onto the ship. But that’s not the end of the story! Once your shipment arrives at the port there are all kinds of extra charges, such as:
- Unloading charge;
- Port fees;
- Docking fees;
- Storage fees;
- Clearance fees;
- Etc.
And I’m not talking small figures here! These fees can run into hundreds of pounds! That’s why it’s crucial to take these numbers into account BEFORE you order any goods so that you know precisely what your final product cost will be.
Again, the easiest way to keep these costs under control is by using a freight forwarding company. You can ask them to quote for door-to-door delivery which includes all the fees associated with Sea Freight shipping.
Even with all the additional fees Sea Freight is still the cheapest shipping method for imports from China. Remember that it’s cost effective ONLY if your order is big enough. Usually, a half pallet or one full pallet will be enough if your margins are right. Again, this will depend on the kind of goods you’re importing, their value and weight. Sometimes Air Freight offers the same savings as Sea Freight with the added bonus of much speedier delivery.
In general, Sea Freight is better for bulky items or in cases where the shipping time is not that important. Personally I try to stick to couriers and Air Freight as often as possible as I just can’t stand the long wait involved when using Sea Freight. (but then again I deal mostly with small, light weight items).
Advantages of Using a Freight Forwarder
Here is some good news – I have recently started recommending a freight forwarding company called Woodland Global. You may already have heard about them if you’re an active member of The Wholesale Forums as Darren, who works for them, is a member there and he helps people with questions about importing.
Woodland Global is a great company to deal with and so far I have only heard positive feedback about them:
- There are no yearly or joining fees;
- They’re UK based and very easy to get in touch with;
- They’re fast because they ship containers from China on a weekly basis;
- Their pricing is very competitive, even for small-time importers;
- They will deliver goods to your door and take care of all the documentation.
In a word – Woodland Global is a perfect solution for small-time importers! Their fees are very affordable and they’ll even deal with small orders. If you’re interested in their services and need a quote, get in touch with Darren on TWF or simply use the contact page on their website.
Imagine the kind of opportunities this opens up to you, especially if you’re just starting out on your journey and you’re still looking for the perfect niche? Most people stay away from bulky items as they don’t want or don’t know how to deal with Sea Freight shipments effectively. Now, with the help of a freight forwarding company, it’s suddenly not so much of a problem anymore!
Woodland Global can even pick up goods for you in China and deliver them to the nearest port. However, if possible, always try to arrange shipment of goods to a Chinese port via your supplier, as this will often work out to be cheaper.
Shipping from the US
If we talk specifically about importing from the USA, the cheapest option for sending parcels is with the US Postal Service. They’re reasonably priced, especially if you don’t opt for their fastest shipping method. You can send up to 30kg per shipment and the closer you get to that 30kg mark, the cheaper the price per kilo.
Even if your order comes in at 50kg, you can simply split it into 2 shipments and still send it via USPS. Of course, this will only work with small, lightweight or valuable items, not furniture or LCD TVs. For bulky items you’ll want to go back to using Air Freight or Sea Freight.
As you can see, each method has its advantages and disadvantages, but in general you should be able to make your decision based on these 3 major factors:
1) Size and weight of the shipment
2) How long you can wait before the shipment arrives
3) Value of goods
In other words, the best shipping method will depend on your order!!!
Payment Options
When dealing with ANY supplier for the first time, you have to be extremely careful. There are so many scammers operating out there in the wholesale industry, so before you decide to send money to your supplier, make sure you do all the background checks available to you to make sure you’re dealing with a legit company. And even then, always, always start with a small trial order to avoid huge losses if that supplier turns out a scammer.
When you have done all the checks and verified the supplier, you can place your first order. Which payment method is safest to use? Usually, suppliers will accept the following:
Wire Transfer – this means sending money from your bank account to the supplier’s bank account. This is the most common payment method used in B2B transactions. Wire Transfer doesn’t offer ANY protection, so only use this method with suppliers you trust 100%. Sending money to a supplier in China can take up to 5 working days.
Transfer fees will vary from bank to bank but in most cases will be in the region of £10-£30. Most banks offer international wire transfers at a reduced cost when you use the bank’s ONLINE banking facility. Finally, the fee you pay your bank to carry out this transaction is usually a fixed one which means that the more money you send per transaction, the lower per pound fee you’ll pay.
Most Chinese companies will accept wire transfer as a default payment option. If they don’t, it may be a sign that something dodgy is going on. Make sure you only send money to the company’s bank account and not to a personal bank account, no matter what story the Chinese supplier tells you.
It’s worth bearing in mind that even though your bank may charge you only a fixed fee for making the payment, that there are usually additional fees involved. Banks typically add a markup to the exchange rate and so you end up having to pay more to send money overseas.
TransferWise: Companies that specialise in international money transfers could save you a substantial amount of money if you’re looking to make frequent transfers to your Chinese suppliers.
FCA and FinCEN regulated, TransferWise are up to eight times cheaper than banks when it comes to making international payments. They always convert money at the mid-market exchange rate – ie. the rate you see on Google is the rate you’ll receive. The only fee you’ll pay is a small, upfront fee on the value of the transfer. You can also make global USD payments to your Chinese supplier and with their fixed fee of $2 + small % cost of currency conversion, their rates are very competitive.
Setting up the payment is simple as well. You sign up for a free account, set up your transfer by entering your supplier’s bank account information and state what currency you’d like to pay them in and then fund your transfer. Options include bank transfer and debit/ credit card. Your supplier won’t need to do anything. For them, it’s just like receiving cash into their bank account.
With over 3 million customers and co-founded by the first employee of Skype, you can be assured that your money is sent securely. However, just like with a normal wire transfer, your money is not protected if your supplier turns out to be fraudulent so it’s best used when you’re paying a supplier you trust.
You can find out more about TransferWise in my post here.
Credit/Debit cards – one of the safest ways to pay for goods is by using your credit card. Chinese suppliers will vary rarely take credit card payments but companies in the EU or US will, in most cases, be happy to accept credit card payments. Some companies may add on a small extra fee to cover the fees they have to pay themselves when they accept a payment by credit card.
Why are credit cards good for paying your supplier? First of all, with most card issuers you can initiate a charge-back if something goes wrong with your order or the supplier turns to be a scammer.
Secondly, most cards offer a cash-back or points system where you can actually get some money back in the form of bonuses from your bank – be they frequent flyer points or extra cash in your bank account.
Lastly, if the supplier accepts credit cards it’s a pretty good sign that he’s legit, especially if we are talking about suppliers in the UK and US. Why? Because it’s not that easy to set up a merchant account and start taking credit card payments. Companies have to undergo a strict verification process to be able to take card payments and this is something most scammers won’t do.
PayPal – I’m sure you’re fully aware of what PayPal is and how it operates. These days, most Chinese suppliers will accept PayPal payments. All your payments with PayPal are protected, so you can always open a dispute and request a refund if a supplier has scammed you. Now, you will not always win those disputes, but PayPal’s most recent policy is generally buyer friendly and sellers are the ones who have to prove that the transaction was legit and the goods were delivered.
Again, it’s not that easy to open a PayPal account in China, which is why scammers try to avoid using PayPal and will push WU, MG or other similar, unsafe payment methods. As with a wire transfer, make sure you’re sending money to the PayPal account of the company you’re dealing with and not a personal PayPal account.
Escrow – Legitimate suppliers know how important safe payment methods are to buyers and that’s why when dealing with suppliers on Alibaba, you now have the option of using Alibaba’s escrow payment system.
What is escrow? With escrow, you first send the money to an escrow company and they hold it for you until you receive and inspect goods and only then release the money to your supplier. It is by far the safest payment method as you ONLY pay your supplier once you have received and inspected the goods.
Western Union, MoneyGram etc. – NEVER ever deal with a supplier who only accepts Western Union, Money Gram or similar payment methods! The only time you should use Western Union is when you are ordering product samples as WU transfer fees are much lower than bank transfer fees.
But only do it with totally verified, trustworthy suppliers. When you use WU, you can’t actually send money to a company; only individuals can send and receive money via the WU network.
Most scammers will only accept payments via Western Union. If branded goods are involved, it’s a sure sign that you’re dealing with a scammer!
Personally I try to stick with PayPal when dealing with Chinese suppliers and PayPal or credit card when dealing with US based suppliers. Wire transfer is usually ok for European suppliers and manufacturers, if we are talking about verified suppliers.
Currency Exchange Rates
There’s not much really you can do about currency exchange rates; you simply have to accept them as an additional cost when dealing with suppliers abroad. If you’re dealing with large amounts of money (in excess of £10k+), you can look for currency exchange companies that may offer you better rates. Personally I have never used such companies as I’m only dealing in high profit margin items these days where 1% doesn’t have any impact on my bottom line.
If PayPal is the only payment method offered by your supplier, you simply have to accept PayPal’s exchange rate as it is. If wire transfer is an option, you could probably get a better rate from your bank BUT they’ll take a commission on an international transfer which will offset all the savings you would make on the currency exchange.
If you have a really strong, long-term relationship with your supplier, and you’re 100% confident they won’t scam you, try offering a PayPal Mass Pay option to your supplier – in return for a percentage from the total you have to pay (PayPal won’t charge any fees to a supplier using Mass Pay).
So for example, if you pay $1000 via PayPal in the usual way, PayPal will charge a fee of around $30 and the net amount the supplier will receive will be $970.
But if you agree to using Mass Pay, the supplier might charge you only $980, generating savings for both parties. $20 may not seem that much but that’s only if you send $1000. For larger payments this method can save hundreds of $ in fees! REMEMBER, only do this if you’re 100% confident about supplier you’re dealing with!
To sum it up – factor in currency exchange fees as an additional cost that you can’t do anything about! PayPal will probably turn out to be the best payment method for you, especially if you sell on eBay (buyers will also pay you via PayPal, simplifying cash flow for your business).
Taxes
When you import goods into the EU from abroad, you have to pay two kinds of tax before the goods are actually released to you:
- Value Added Tax (VAT)
- Import Duty
The VAT rate is different for each European Union country, so make sure you check your country’s specific VAT rate before making any calculations. The current VAT rate in the UK is 20%.
Import duties vary widely from product to product so do check the accurate rate with the help of this free online calculator:
http://www.dutycalculator.com/
Import duty will be usually be in the range of 2%-5%, but with some products it can be as high as 10% or even more. On the other hand, with some product groups you won’t have to pay import duty at all, so be sure to check out that online calculator to see exactly how much import duty you’ll have to pay for your particular goods.
REMEMBER!!! Import duty is payable only on the goods’ value, but VAT will be applied to the TOTAL of:
Goods’ value (price paid to the supplier)
+
Shipping
+
Import Duty
So VAT is calculated on the value of the goods + shipping + import duty. I just wanted to clarify this as people often get a nasty surprise when they see a bigger number than the 20% of the goods’ value they were expecting.
Register for VAT or not?
Many people who are just starting out importing will ask this question – should I register as a VAT payer before I import goods from abroad? The answer is NO, NO and NO! Without going into numbers and complex calculations, you will want to stay away from VAT registration as long as possible (that is, until you reach the maximum turnover after which you HAVE to register for a VAT number by law).
So just remember that you don’t have to register before you reach the threshold. The current VAT threshold in the UK is £77K over the previous 12 months. You can even ask for an exception to be made if your turnover exceeds this amount temporarily. You’ll find more details on the HM Revenues and Customs website. VAT thresholds vary from country to country, so if you’re based outside the UK, be sure to check the local laws regarding VAT registration.
Read more about VAT registration for small businesses here.
EORI Number
A few years ago the EU introduced an EORI number to monitor imported goods. This number is used for statistical purposes and there are no extra costs involved.
You’ll find more information about EORI on the HMRC website. As a general rule of thumb, if you’re a registered business it’s a good idea to register for EORI before you start your importing activities or else the process of receiving your shipment when the goods arrive in the UK may be delayed.
EU regulations, CE mark.
With some product groups you have to be extremely careful when importing goods from China, or any other country outside the European Union as you must ensure they comply with EU rules and regulations. Some sensitive product groups are:
- Health & Beauty products
- Electronics
- Children’s toys and equipment
- Food
- Chemicals, drugs, creams etc.
What you’ll find is that most Chinese suppliers will tell you that all the certificates are in order : DON’T take their word for it! If you can, verify that all the documentation is genuine so you can import those goods into the EU without any chance of them being seized and destroyed at customs.
Copyright & Patent Issues
Another sensitive question – patents. You’ll eliminate copyright issues as long as you stay away from branded items and items with branded designs (such as kids’ toys with Disney characters, company logos, movie characters etc.) With patents, the situation is more difficult as there is no easy way to find out whether an item you want to import from China doesn’t breach any registered patents. What you can do though is ask your supplier about potential issues with this BEFORE you place your order.
Patent issues often come up with electronics and specific instruments and devices, so if you’re dealing with some really fancy device or piece of equipment, make sure the supplier’s products don’t use any patented, protected technology.
Conclusion
Don’t be afraid of the importing process, but start small.
It’s not as complicated as it looks, especially if you use courier as a shipping method. With couriers you don’t have to worry about long shipping delays or customs clearance as they will take care of all the documentation for you.
Take it step by step – place a small order on AliExpress and see how it works out. On AliExpress you’re protected by an Escrow Payment System, so if something goes wrong with your order, you can always open a dispute and get your money back.
Good Luck!
Andrew
[…] much everyone who imports from China (or anyone who is interested in importing) already knows about Alibaba.com – the world’s […]
Hi Andrew,
Your website is very well detailed.
Thank you for sharing this info but I am very confused so I decided to post a comment.
I registered on the website Alibaba and I am trying to import 2 solar panels from China.
About 1 month ago I called HM Revenue and they told me that I can do that as a private if the power I import doesn’t exceed 700 Watt.
I explained this to the company in Alibaba, we dealt about the price and quantity and they are ready to send the panels with DHL.
They also insured that they respect the anti-dumping regulations so i will not be charged for this when the panels come to the UK border.
This morning they asked me about VAT number which I dont have.
Called again HM Revenue and they told me I need a EORI that could be a dummy EORI if I am a private buyer.
During the call that lasted about one hour, somebody told me that I have to use the code C220A and someone else told me the code GBPR but I have checked on the website and it seems from the webpage that I have to have VAT number for a EORI.
Can you please give me some info?
I can register as a seller on Ebay if this is necessary to import the panels.
Thank you for your help,
Angelo
Hi Angelo,
No, you don’t need a VAT number to get EORI number. These are two totally separate things.
And you don’t need VAT number for the Chinese supplier either – why did they even ask you for it?
Thanks,
Andrew
hi Andrew,
the company asked me for a VAT number.
HM revenue is quite useless.
Today I will call DHL. Maybe they know something about it.
Any suggestions?
Thanks,
Angelo
Is that supplier really located in China?
If so, they have nothing to do with your VAT number…
hi Andrew,
Yes they are based in Shanghai.
Many thanks,
Angelo
Then it’s very very weird…
Hi Andrew,
how can I have EORI if I don’t have a company yet?
Many thanks,
Angelo
You don’t need to have a company to get an EORI number.
Individuals can also get EORI numbers.
Hi Andrew,
I am apparently quite new to importing and so I’d like to ask a few questions:
1.) What would be the fastest method to ship a sample package(5-10kg) to the UK, without is being too expensive?, as I honestly can’t afford to wait 6 weeks.
2.) Where do I check to see if my electrical goods have any EU and Customs requirements.
THANK YOU in advance
Hi Yaseen,
Thanks for your comment.
1) Courier! It’s really the only viable, fast shipping method to use for such small sample packages.
2) https://www.gov.uk/ce-marking#products-that-need-ce-marking
Thanks,
Andrew
Andrew,
I live in the US. Is your course valid only for those outside the US?
David
Hi David,
Yes, my course works in the US, absolutely!
I have hundreds of happy customers from the States and system works in exactly same
way there as here in the UK.
Thanks,
Andrew
Hi Andrew,
I’m very new to this and hoping you can give me a little advice! I’m looking at importing a craft product from China via Alibaba, which I can sell in various quantities on ebay for profit.
I don’t have a lot of money to start out with here, I was looking at ordering around 25-50kg of the product, costing around £3 per kg of it.
I’ve looked at quotes on courier sites such as DHL to try and get a rough quote (although I’m not sure at all on the size etc as of yet), and I’m seeing quotes of £200+ just for the shipping. Is this correct or am I missing something? Am I likely to have to pay this much for such a small order, then have to pay customs etc also?
This is probably a very newbie question but yeah, I’m literally just starting out in this, so sorry about that! 🙂
Thanks!
Hi Hayley,
Yes, couriers are quite expensive and not really meant to be used for such shipments.
If you want lower prices, you need to use sea freight or at least air freight. On the other hand, 25kg-50kg is really not enough/worthwhile to use sea/air freight. So you really have two options:
1) Accept courier fees.
2) Increase order to at least 100 kg and then use air freight for it.
Thanks,
Andrew
hi, also to find my ROI profit for childrens clothes how would i filter this in ebay advanced search, to work it out? thankyou
You can’t find ROI using eBay’s advanced search…
To calculate ROI you have to know product’s cost price first (price you’ll pay to supplier + shipping + taxes), then sell those items and only then you can calculate actual return on investment (ROI).
You can of course calculate approx. ROI judging by average selling prices on eBay but you need some experience to do this.
hi, to begin an small ebay business from a new account from scratch, is a personal account ok or do i need an ebay business account? will the personal one be fine all the way through?
thanks for your time.
Hi Delia,
If you run a business on eBay (regularly sell items to make profit), you have to register as sole trader with HMRC and upgrade your eBay account from personal to business. So yes, you’ll need a business account.
Andrew
[…] this guide along with my hugely popular posts on How to Import Products from China & How to Avoid Scammers and Find Trusted Suppliers on Alibaba to start your very own importing […]
I am trying to import some IT hardware stuff from china. more than 100 suppliers contacted me within 2 days and still emails are pouring from china with quotes.I placed query on alibaba.com but none of the suppliers registered with them contacted.All suppliers want payment to be made by T/T,Weston Union or Moneygram. They do not take payment by any other mode. The quotations are very low very much tempting for importing product.What can be done?
Hi There,
Thanks for your comment.
For that reason, I personally don’t post public buying quotes on Alibaba – you’ll get mostly spam/scam offers. From the sound of it, you have already experienced it.
Best way is to simply search for products on Alibaba and then evaluate sellers following this guide:
http://andrewminalto.com/alibaba-scam-exposed/
Don’t forget that China is NOT the place to go after BRANDED goods! Only un-branded items can be sourced from Mainland China.
Thanks,
Andrew
Dear Sir,
You are saying do not buy branded products from China. Then which country I should buy IT stuff like hard drives,laptops etc. ? They all are manufactured in China for many years now.Besides they will be cheaper where they are manufactured isn’t it ?
yes, theyŗe manufactured in China BUT no no sells them directly from factories!!!!
In China you’ll only get fakes or get scammed.
Branded IT goods you want to source from official, authorised distributors in your country or say UK, USA.
Dear Sir,
I checked for few branded products and found that, it may not be possible to import directly from UK/USA products that are branded. There are already distributors appointed by these companies in most countries. The
products need to be bought from them. It is hard to find out pricing etc. when we buy from distributor in the same country, the pricing is tough and reselling has very small margins. Are you able to source distributors from USA/UK for me or suggest few for us ?
It totally depends on products you’re after.
Yes, many companies will already have distributors in place in most countries and then you can only purchase via them. Margins with most branded products are extremely small – that’s why I recommend dealing with un-branded or your own brand products instead.
Only thing I can recommend is really to look for something else to sell.
Andrew
Hi Andrew,
The information on your webpage is very helpful! Thank you so much for this!
I recently purchased some electrical goods to be ship from China to UK for a restaurant kitchen. ie electric water boiler, induction hob, fryer and 19kg mixer. Also a few stand alone gas hob and two large cooking pots. Would these items have any clearance issues in both UK and China? Please advise.
I intend to use the freight forwarder for Ex work and door to door service.
Thanks a lot
Will
Hi Will,
Thanks for your comment.
To be honest, I don’t know. As these will be used in a restaurant, chances are they need some special certification, at least CE.
But I’m not an expert in this area so unfortunately can’t help much.
Sorry about that.
Andrew
Thanks for your time Andrew and your helpful webpage. I found this page a little too late as I already bought these goods!
I was told by the freight forwarder that they are fine to ship back to UK but was not told that I need the certification! I’m stuck!
Thanks a lot
Will
[…] am looking at designing and ordering my own unbranded products, imported from China, then also selling these online as a new […]
Hi Andrew,
I did a research on Alibaba and wanted to buy a product from 2 different sellers.
When I wanted to order around 150 pieces (0.7kg/piece) they told me that a container has to be used. And both quoted me a price of over $1000!!! I immediately refused to continue because even if these prices were legit, all the profit would be gone.
I guess these shipping prices are not genuine, are they?
Hi Jophan,
If it’s just 105kg, a full container is def. not required. I don’t know how bulky these items are but probably we’re just talking about 1-2 pallets?
I really don’t know why they quoted you so much for shipping, it doesn’t seem right at all.
Thanks,
Andrew
no, it wasn’t too bulky. around 30x15x10 maybe. seems to be scammy imo.
Then it def. sounds like a SCAM!
Stay away!
[…] read on the article about importing goods. I wanted to ask a few questions if I […]
Hi Andrew, Thank you for you sharing i am trying to import around 30cartons of cosmetics to products from china to uk, But i am a bit confused as the supplier told me that i have to go to the port and collect the shipment and clear it from there, What would you suggest me and what requirements/documentation should i have as i don’t have an import export licence but own just a beauty shop.
Thank you
Hi Amaha,
Thanks for your comment.
1. You don’t need any special import licenses to import products from China.
2. As these are cosmetics, make sure that your supplier has EU conformity certificates in place:
http://ec.europa.eu/consumers/archive/sectors/cosmetics/documents/directive/index_en.htm
3. For customs clearance and delivery from port to your beauty shop, easiest way is to use a freight forwarding company such as:
http://www.woodland-group.com/division/woodland-global
Get in touch with them to get a quote for this procedure.
Thanks,
Andrew
http://szyds.en.alibaba.com/company_profile.html
http://szyidashun.en.alibaba.com/company_profile.html
Can you see why the same company has two webpages on alibaba.
The reason I’m asking is they gave me hugely different quotes.
Thanks
Hi Lucas,
I’m not 100% sure but it could be that one profile is Fake! Probably the newest one – 1st year Gold supplier.
Contact them via their official website and ASK why there are two profiles on Alibaba.
Thanks,
Andrew
Thanks Andrew. I have the same feeling! Sourcing through Alibaba looks really tricky!
I contacted the older one and was told they are from the same company. So why did you do that? Anyway, frustrated on alibaba, do you have any ideas of alternative channels?
Best wishes!
Here are another two platforms:
http://www.globalsources.com/
http://www.made-in-china.com/
Did you ask WHY they have 2 profiles?
They said they would have more chances of getting seen by potential customers.
Hi Andrew.
I’m just about going into a clothing fashion line for women, ordering from Ali Express in China. The manufacturer has sent me samples i requested, and I am very pleased with his work and its exactly what I want.
My issue is this.. I’ve built a website and intend selling online my own brand. But I really don’t know how to deal with the import duties and VAT. I have asked the manufacturer to send then in batches, for example, I am ordering 50 dresses for a start, I have asked him to send it 10 each , in 5 batches. He sends through DHL. And I have also asked him to reduce the price for each batch. Instead of $700 for a batch, I have asked him to put $200.. Is this okay? will the UK customs give me problems? Or do I still need to use a clearing agent?
Hi Jess,
Why do you want to do this? To avoid tax?
Let me clear this up for you – import tax & VAT is a part of importing business, if you’re not ready to cover these, then don’t even start! Besides that, tax evasion is illegal and can get you into serious trouble.
Also, if you split up an order and send in separate packages, you’ll overpay for shipping – A LOT if it’s a courier service! So it will actually be cheaper for you to send everything in one package and just pay taxes as you should – on FULL order value.
You don’t need a clearing agent as companies like DHL will take care of documentation for you and just send you an invoice to cover all taxes and admin fees.
Thanks,
Andrew
Thanks for your response. If I order goods worth $700, the tax is almost 200 GBP, That is too much for a new business I think.. What do you think?
If you order goods for $700, tax should be about 100 GBP.
As $700 is about 400 GBP x 0.25 = 100
Hi,
Nice post!
Do you have any recommendation regarding companies that will check suppliers, factories, products and shipment in China? I would like to know more about them because not possible to travel there.
Thanks!
Hi Marus,
I personally don’t use sourcing agents anymore so can’t recommend any reliable companies.
But for company verification, pre-shipment inspection I just use inspection services provided here:
http://inspection.alibaba.com/
Thanks,
Andrew
Hi Andrew i have just made a start on importing cheap items from China!!!
but i notice most people on here mention Aliexpress!!
i have actually made couple of purchases via DHGATE as they offer full money back guarantee if i dont recieve goods or unhappy with items !!!
do you know much about DHGATE?
Thanks Andrew
Dom
Hi Dom,
Yes, I have purchased some stuff from DH Gate myself in the past – it’s pretty similar to Ali Express (on Ali Express you also have money back guarantee in place). But from what I have seen, DH Gate is more expensive compared to Ali Express so that’s why I recommend people using Ali Express instead. There are probably exceptions though so if you can find a better deal on DH Gate, you can def. use that platform too.
Thanks,
Andrew
Hi Andrew
I’m about to place my first order with a Chinese supplier.
They seem like a genuine well established company, with 6yr Gold Alibaba membership.
I had a sample sent to me for which I paid using PayPal to their company account.
Now I’m ready to proceed with the order but now they want 30% T/T and 70% T/T after B/L copy (to their company’s bank account)
I requested PayPal again but they are saying that because the term is FOB I have to pay through a “public account”.
Do you know what this means? Is PayPal ok for FOB?
Thank you
PayPal should be ok for FOB too.
It could be that they used a personal PayPal account for the samples which they can’t use for the real order.
Still, ask them that you want to pay via PayPal. If that’s not totally possible, maybe they can take Escrow.
Andrew
What’s the difference of “carrier” and “freight forwarder”?
Thank you and I just learned a lot from here.
Hi Lucas,
Word “carrier” can have multiple meanings but usually by carrier in context of importing we mean as shipping courier like FedEx, DHL, TNT, UPS etc.
Freight forwarder companies are more flexible – they can pick up goods for you, arrange consolidation, ship via sea or air freight, do customs clearance for you etc.
Most courier companies also can do this but they often work on account bases (you need an account with them for these processes) and in general are more expensive than freight forwarding companies.
Thanks,
Andrew
Sorry for having so many questions!
I’m starting importing from China and the shipping fee quoted from the supplier is even higher than the price of the goods. I’m starting with a very low volume. Thinking about setting up a DHL/UPS account which may can save some fees? But who is going to physically pick up the goods? Also in terms of the escrow, I was asked to pay the escrow fee, isn’t it supposed to be paid by the seller usually?
Thank you so much for your quick response and hope you everything is going well.
If you opt for a courier service like DHL/UPS, they will collect goods from your supplier and deliver to your address.
It’s quite common for suppliers to ask for additional fee when using Escrow.
Thanks,
Andrew
You are so helpful! Thank you!
Very clear and timely! Thanks a lot Andrew!
[…] are one of the best ways to find new suppliers, particularly if you are not yet ready to place large import orders from China and are looking for UK, EU or US based wholesale […]
I had recently read something about small importers being able to get a break with net 15, 20 or 30 days via paypal….can you tell me anything about that?
Hi Alison,
Hmm, sorry – I haven’t heard anything about that.. sorry!
[…] You can read more about various shipping methods in my Importing from China guide. […]
Hi Andrew,
I am about to place my first order from China via Alibaba website. I am getting 100 quantities of kids rubber wellington which ten of them are ornamented with angry birds faces. Should I get in trouble when my parcel arrives at customs or when selling it on ebay. Also I am wondering when paying import taxes, normally they are calculated on buying from supplier value or on resale value ? Oh and by the way, from what kind of big order you need to take care of getting EORI number. Please advice. Many thanks , Lina
Hi Lina,
Thanks for your comment.
Yes, you will get in trouble as those are ILLEGAL, un-licensed products. They may be destroyed in customs or later on on eBay you may face problems proving product’s authenticity. So just don’t do this! Don’t import any products with trade marks, logos and Disney characters as explained in this guide:
http://andrewminalto.com/wholesale-disney-items-from-china/
Taxes are calculated on cost price (supplier) and NOT resale value. EORI number is usually asked for all air, sea freight shipments and courier shipments that are bigger than few hundred pounds and coming from China. I don’t know exact number though as from my experience this is not set in stone, at least in real life,
Thanks,
Andrew
Andrew..I plan to bring 7 granite headstones in from china (1 is for personal use)
the other 6 i plan to sell from home to the public
if i pay the tax +vat at the port do i need to pay tax on the profit i make on the 6 stones
last year i brought 2 headstones in for personal use .will it just be the same if i sell ?
Do i need to inform anyone about this ?Thanks
Hi Lorraine,
No, customs doesn’t care about that – they won’t ask you to pay any tax on potential profits.
But if you do start a business, then of course you need to register with HMRC. Check out my business registration guide for more info:
http://andrewminalto.com/ebay-tax-registration/
Thanks,
Andrew
First – Thanks so much for your wonderful article. It has been most valuable for me.
Next – just an update on your “best method” to pay via Paypal. . . Try to fund your paypal account with a credit card (and if you have a bank account with paypal – make sure it’s empty at time of funding).
Why?
Because if you order 10,000 worth of children clothing and customs destroys it because they claim they found Lead in the buttons . . . it’s up to the paypal judge to decide if you’re responsible or not.
But by using the credit card to fund paypal – you can always make a further chargeback with the credit card company – and explain your situation to someone who might think differently than paypal. Furthermore, you can even dispute the charge with the credit card and refuse to pay the bill. It will appear on your credit report which you may further be able to fight.
Hi John,
I have always said that you want to fund PayPal transaction with credit card, to leave charge-back as last option if everything else fails.
Not sure where do you get the empty bank account line…
Andrew
Often you need to have both, verified bank account and verified credit card. Paypal tends to use the bank account as default. Unless it’s empty when you (fund) and do the chargeback, they might take the chargeback amount out of the bank account.
Hi Andrew,
I stumbled upon this article and found it quite informative. Can you explain the reasoning behind funding paypal account with a credit card as opposed to a bank account when ordering from China.
Thanks
Hi Steven,
Yes, if you fund transaction with your credit card, you can always initiate a charge-back with your credit card company if something goes wrong and get your money back (in most cases). If you fund transaction from your bank account, it can be reversed. Your only hope then would be hoping to win PayPal dispute.
Thanks,
Andrew
Hi Andrew
Thanks for all the information. My friend owns a Cell phone repair store and he was wondering if he can import Iphone 4 and 5 screens from China? Is this against the law to import Apple products and sell them? Just a bit confused about this.
Thanks for the help.
Hi Dustin,
Thanks for your email.
No, this is perfectly fine. These screens won’t carry Apple logos or packaging so in essence they’re un-branded.
Thanks,
Andrew
Hi Andrew
Thanks for the quick reply. Excellent website!
Hi Andrew,
I imported some samples through UPS and they charged me £75 to deliver a parcel that was something like 11*20*15 (dimensions), weighing 0.3kg; a small package to say the least. I find this a ridiculous amount of money to be paying every time I want a sample. How would you go about tackling this issue?
Thanks,
Chris
Hi Chris,
That’s def. too much for such a small package.
This means that your supplier tried to make profit on the sample.
Usually I pay $30 – $50 max for such small packages via EMS, DHL or Fedex.
Thanks,
Andrew
Hi Andrew,
Firstly I have to commend you on a superb information website which so many people will have used and benefited from and probably not had the chance to say thank you.
Having been on many forums ranging from legal expertise to engineering solutions I’ve never found one where someone has remained committed enough to keep threads open for years and had the patience to answer every question in such a diplomatic and professional way. Hat off to you.
I’m not sure if you can answer this as UK trading standards can’t help due to “the nature of the Chinese CE certification system”
I am thinking of importing bicycles from China. No supplier offers my type of bike with CE certification. Some are prepared to get the bikes certified but they say there will be a cost ( approx. £30.00 ) for each bike.
I am sure if they get CE certification on a standard bike that they already produce they can then sell it with CE to anybody which would be a real bonus to them…but I would bear the cost. ( They will not negotiate on the figure )
What are your thoughts on this?
Hi John,
Thanks for your comment.
You’ll probably need to certify these bikes in the UK, using a certified testing house.
Do a Google search for these, get in touch with them and ask for quotes. You won’t have to certify each bike though, only one and then use that certificate on all batch.
Thanks,
Andrew
Hello Andrew
I am Priya again. I was told not to put the actual value on the postage so I can pay less vat and import duty.
This doesn’t seems right and I don’t want to get into any troubles. I am ordering only 50 pcs. one item cost 8.7 usd.
supplier can arrange shipping by DHL for 190usd .weight of an each product 460g.pls advice me.
Supplier said he will accept the ESCROW payments,but I couldn’t see anywhere in his website order via ESCROW. supplier from Aliexpress and he got good feedback.
This is my first time so I don’t know how this Escrow going to work in Aliexpress? Thank you for your time and advice.
Thank you
priya
Hi Priya,
You de.f don’t want to under-declare goods, that’s illegal. Supplier should attach the invoice to the package – with exact amounts you paid for goods and shipping.
Shipping costs seems about right for such 25kg package.
As for Escrow – you don’t have to think about it when ordering on Ali Express – it’s automatically provided for all Ali Express transactions.
Thanks,
Andrew
Hi Andrew,
I saw your blog and wondered if you have the time would you be able to assist or give a rough estimation for me.
I would like to import small accessories.
Import duty rate is 9.7% and vat is 20%.
The problem is these sellers seem to ask an awful lot for shipping.
If I was to buy 100 items at £3 GBP a piece, would you be able to give me an estimation on how much that would cost to have it delivered to its destination?
Weight about 5KG
So this should include Shipping\Customs\Vat.
If you have time to reply I would be very grateful.
Regards
Gearoid
Hi Geroid,
Thanks for your comment.
Shipping fees will depend on what courier company your supplier uses but probably will be in region of $100 or so. (package dimensions are also important).
How much your supplier asks for the shipping?
Let me know.
Thanks,
Andrew
Hi Andrew,
First off, thanks for the swift response.
One guy was asking for 3 USD per piece that weight .07KG and another guy asked for 400 dollars for 100 items both with UPS.
$100 would be great so I will try negotiate to that price, give or take.
It does seem with a bit of negotiating that they will come down though.
Great blog, it has given me the confidence to try at least make a small order now for starters.
Thanks
Gearoid
$400 is a total rip-off for a 5kg package!!!
That is, unless the items we’re talking about are very bulky, large?
What’s the size of the box?
Andrew,
I was looking at buying paintball masks on Alibaba. While I was doing my research, I found another US company already selling the exact same masks I was looking at. It seemed obvious to me that this company was also importing these masks from China. I’m wondering, if I buy them and start selling as well, am I going to run into issues with the other company? They can’t have any sort of patent or trademark on the design of the mask can they?
Or could it be that the Chinese based company is ripping off the design of the mask from this US based company?
Hi Justin,
Thanks for your comment.
Yes, designs can be protected and you’ll have to find out whatever this US company has any registered designs or patents on those paintball masks.
You probably want to look @ brand’s manufacturer’s website as well as do a search for the company name in US patents data base:
http://www.uspto.gov/
Thanks,
Andrew
I was told that its illegal to buy ribbon with the Disney characters from china. is this true? I understand about copyright and all that, but if aliexpress is working from the states with suppliers in china, why are people saying you can get arrested for selling this ribbon.
Hi Missy,
Yes, that’s true. You CAN’T buy any Disney and similar character products from China – they’re ALL un-licensed, illegal stuff.
Take a look @ this post for more info on this subject:
http://andrewminalto.com/wholesale-disney-items-from-china/
Thanks,
Andrew
Hi Andrew,
Just read this blog post and all the comments and replies – I was hoping that you were still answering, great to see you are! Fantastic blog, thanks very much for putting this all down, and for the informative answers you have given in the comments.
I hope you can advise on my situation. I am about to place a small trial order with a Japanese company for some pet toy products – 36 pieces, total cost of around £60. They have several shipping options, but the one I am going to go with is EMS, which will cost around £25.
I am confused around the EORI number – do I need to get one? Or will this be covered under EMS?
Do I need to do anything to sort out payment for VAT, or again, is this covered under EMS shipping?
Thank you!
Hi Steve,
Thanks for your comment.
No, for such small order you don’t really need an EORI number. And when your order size increases, EMS (handled by Parcel Force in the UK) will inform you when you need to register for EORI number.
As for VAT & import duty – when goods arrive in the UK, EMS (Parcel Force) will contact you about this and send you an invoice for VAT, import duty and customs clearance charge.
Thanks,
Andrew
Thanks for the response! Looking forward to exploring your website 🙂
Cheers, Steve
Hi Andrew,
I’m new to this importing business and would like some help. I am looking to buy farming goods from a manufacturer in china which the MOQ is 200 pieces. Each piece is 6 kg and I was going to buy 200 pieces. I was given a price from the manufacturer in china for $5000 including shipping. I’m not too familiar with customs and how they charge. How much extra would I be looking at once the goods have been delivered to Dublin port? Or for that case is Dublin port the best port to deliver to in Ireland? Is there anything else I need to do before I order these goods?
Hi Ben,
Thanks for your comment.
VAT + import duty will be roughly 25%-30% on top of what you pay supplier. And there will be port charges, customs clearance charges and other related charges.
I would strongly recommend you getting a freight forwarder do all this for you and give you all inclusive Door to Door quote.
You also will want to do inspection of the factory and probably pre-shipment inspection too, to check product quality and everything.
Thanks,
Andrew
Hello Andrew
Thanks for the useful information .My question is , I like to import women cloths from TURKEY and sell them on ebay. I like to start small amount. It worth £400 .what is the best way to get them to uk. do I need EORI number. When I need that number. What would the VAT and import fees be?
Thanks for your time 🙂
Hi Derya,
Thanks for your comment.
If you plan on importing clothing in such light bulk volume, you should use courier for shipping.
Yes, as Turkey is outside EU, you’ll most likely need EORI number too. Courier will inform you whatever you need it or not as sometimes with small shipments like these it’s not required.
VAT will be 20% and import duty you can check using this calculator:
https://www.dutycalculator.com/
Hope this helps!
Andrew
Thanks for your reply 🙂
can you recommend any Courier, I know UPS, DHL are very expensive.
Thank you
Derya
Ask your supplier to organize this for you – they will know best/cheapest courier company to use.
Hello Andrew!
Good page! It was really helpfull.
Well I am living in the UK but would like to start a selling company in Africa next year.
I would like to buy some health and beauty products, stock them in the UK where I live then when I have like a container size of products, I will send it back to Africa. Obviously since i am not a company, it will take me sometimes to build up my stock and then send it over.
My question is: since i will not be selling in the UK and/or online and the products will just come from China for temporary storage and then go out again to their final destination, how can I work out the VAT and import duty?
Can I be exempt of paying it if I have the proof that the final destination is Africa? This is my only option as I am still in the process of looking for a warehouse. What exact paperwork is/are required?
Thanks in advance for your response.
Hi Jacinthe,
Thanks for your comment.
You’ll need to get in touch with HMRC and they’ll explain you the procedure of temp importing and then exporting outside EU. When following the rigt procedure, you shouldn’t have to pay any VAT as products will only be temp in the UK. I haven’t done this myself but as far as I know, for time products are in UK, they’ll have to be stored in specially supervised customs warehouses.
I’m sure HMRC will give you full information on this.
Thanks,
Andrew
Dear Andrew,
I have bought some Li-ion batteries through China at FOB, they have used TNT to courier me the product to India. It is at custom clearance department as of now, and they are asking for few documents to get my product cleared.
As I am an individual and not a company, I don’t have a
1) IEC code copy
2) Authorization for clearance and on company`s letterhead( I don’t have a company’s letterhead)
3) GATT declaration.
Could you explain me please, what could be done regarding this.
Thanks,
Nandan
Hi Nandan,
Thanks for getting in touch.
Unfortunately I have no experience whatsoever with importing in India so can’t really help you out with these questions…
You should simply ask Customs to explain you what each means and how you can get these documents.
Sorry about, not much of a help – I know.
Andrew
Hi Andrew,
I want to ship LCL goods of baby toys like baby walkers and play mat from china to UK. I did I asked my suppliers if the products meet the EU standard and they said yes. My question is how can i know if they are telling me the truth.
This is my first shipment through sea and with my last money saves and so i dont want to make any mistake because of custom seizing
Could you please advise
Thanks
Ieva
Hi Ieva,
It’s not enough that suppliers says this. With products like kids toys, you – as an importer, are responsible for quality of goods and will need to do testing on your own. So you’ll need to contact a testing house to find out what they need from you, how much it costs and any additional information about this process.
Here are few testing houses in the UK:
http://www.eurofins.co.uk/
http://www.tuv-sud.co.uk/
http://www.intertek.com/consumer/
Thanks,
Andrew
[…] The most popular place you already know of course – China! In reality most of what you see being sold on eBay (un-branded) comes from China. You can learn more about how to import products from China here. […]
Hello! I am interested in selling children’s clothing in Greece. I have seen some excellent deals on ebay and alibaba express. The problem is that customs are very strict here for things that are imported outside of eu. I was just wondering if it is actually worth it. I will start with small orders in the beginning. Your advice will be greatly appreciated.
Thank you in advance.
Hi Teresa,
Thanks for your comment.
It’s really hard to say as I don’t know what the situation in Greece looks like. But if you see opportunity like this, probably you should at least give it a try! As you say – start with small orders and see how it goes. Not much you can lose, right?
Good Luck! 🙂
[…] Import it from China in real bulk DIRECTLY from manufacturers; […]
Hi Andrew,
I have ordered some samples and am being asked for a payment slip (for the courier). Can you explain what this is.
Many thanks,
Rob
Hi Rob,
They probably assume that you’ll organize courier on your own? This is only possible if you have an account with a courier company…
Better ask supplier to sort out shipping and charge you shipping cost, add it to invoice.
Thanks,
Andrew
Hello Andrew, thank you so much for your help to many people, pls help me with this.
I ordered some up branded tablets from China worth £150 free shipping with DHL, when item arrive, Dhl send me bill of something like £40, and I pay. pls do I still need Eori num?
Am I within the law. I only sell on Gumtree.
2nd question is,if I use the EORI num on first shipment, how will I use for any other shipment, thanks .
Hi Godwin,
For that kind of order you don’t need EORI number, no – it’s personal use and value is too low.
IF EORI number will be needed, courier will let you know about it BEFORE releasing goods to you.
Thanks,
Andrew
Hie Andrew,
I am just planning to import some products in UK, can u plz confirm me that if i use DHL or TNT or any other courier service… do i need to pay duty, VAT etc?… or courier service will get it cleared on it’s own, and if courier service will get it cleared, are they going to charge me seperately for what they have paid?.
Is there any minimun order?…
I want to order 100 USBs for my workplace.
Also i have found some branded USBs in China.. is it ok to order them or there will be a patent issue?
Your help will be highly appreciated.
Vicky
Hi Vicky,
Thanks for stopping by.
1) Yes, you have to pay import duty & VAT in any case, no matter what shipping method you use.
2) In case of courier delivery, they will clear the shipment for you through customs AND invoice you for all taxes paid.
3) Stay away from any branded USBs from China – they will be FAKES, copies and can be destroyed by customs when they enter UK.
Hope this helps!
Thanks,
Andrew
hi can you tell me how i can aviod anti dumping tax duty when importing from china,and how can i make sure the certifates they send me are genuine
Hi Waheed,
I’m sorry but I don’t give out advice on tax evasion.
Thanks,
Andrew
Hello Andrew,
Do any import charges apply to an item i want to buy from DHGate in China using free shipping by DHL to USA. The total weight of the item is 21kg. Please kindly reply me.
Thanks
Adeyinka Daniel
Hi Adeyinka,
Yes, you’ll most likely have to pay import duty on this import.
Duty is NOT calculated on weight though – it’s VALUE and type of goods you import that matters!
Thanks,
Andrew
Hi Andrew,
I am EU citizen and I want to import goods from china and India and sell them in UK. Can you tell me something about registering the business in UK for this kind of business? Of course, low-as-possible costs of opening and operating such business is must.
Also, some advice about using UK fulfillment house would be great.
Thank you
Hi Radomir,
Check out my latest guide on business registration in UK:
http://andrewminalto.com/ebay-tax-registration/
And these guides about fulfillment houses:
http://andrewminalto.com/fulfilment-houses-the-good-the-bad-the-ugly/
http://andrewminalto.com/royal-mail-alternative-fulfillment-houses/
Thanks,
Andrew
Thank you.
Can you give me your opinion on next business model:
I would source items to sell on Alibaba and import them directly to the UK based amazon fulfillment house.
Then would list them to the amazon and let them do the job, if there is any sale,
Would start with some cheap items, to minimize my risk if items were tough to sold.
Any tips on research what could be possible winners to sell on amazon?
Thank you
It can be done BUT you need someone (like freight forwarding company) who does the customs clearance process for you as you can’t just import and send directly to FBA – they won’t do the customs clearance process for you.
Also, if you’re doing this, you want to make sure your suppliers packs the products in packaging that follows Amazon guidelines, with the correct labels on the outer and product boxes.
As for research on top products – just browse through best-sellers lists on Amazon and use Terapeak for Amazon for further research.
Thanks,
Andrew
Once again, thanks for help.
Hi Andrew,
Thanks for your previous helpful comments. Having done some of my costings, I discover that it appears to be much cheaper to use shipping by sea for 172 kg of goods. However, I have no idea what paperwork I need to have in place to manage its arrival in the UK. I have been advised (by Woodland Global) to find out the shipping line and their co-agent in Southampton. But …. where do I go from there?
I really want to give this a go, but am afraid of making a mess of things. Your advice please …….
Many thanks,
Andrew
Hi Andrew,
Why not simply let Woodland Global do the whole thing for you? I mean – shipping and customs clearance?
This way you don’t have to worry about “connecting” various companies for your shipment.
Thanks,
Andrew
Hey there!
I am actually buying a tempered glass screen protector (Branded ‘Nillkin’) from aliexpress. The seller would send it through China Airmail. I live in India and was wondering if there would be any import costs and/or duties and who will be charging them?
Thanks. Great post BTW!
Hi Pratik,
Unfortunately I’m not familiar with customs clearance and import taxes in India so can’t help you with that.
Thanks,
Andrew
Hi Andrew,
Really appreciate your advice its much appreciated. Thank you.
I have one more question. Im starting to import products using DHL Air from China to the UK. I will pay the VAT and Customs duty when the packages arrive.
I have just read that to do this legally I need to apply for an( EORI) Economic Operator Registration Application to import products into the UK. Is this correct? Will I need to fill this form in to import small quantities legally to sell in the UK? I looked at the Form on the .GOV website and it asks for a Shipping Number etc. Do you need to fill one of these forms in every single time you import a package from China ?
So to clarify is this all that is that is needed to import for sale in the UK via DHL Air
1) Pay VAT and Customs TAX ( DHL will bill me this )
2) Register as EORI ( ?? )
3) Get an import license ( only for specific products )
4) Ensure product has CE Stamp (if required) for Electronic Devices
Or have I missed something
Any help would be greatly appreciated. I’m a new startup Ltd Company and hope to import products for sale to the U.K market. I’ve read lots of government websites but its still not 100% clear. I just want to ensure I’m doing this legally at startup.
Hi Chris,
Thanks for your comment.
Yes, you got everything right.
You only need to apply for EORI number once, for your first shipment, so it’s a one time thing.
It’s best to apply for EORI number when your first order has been dispatched and you have shipping number on hands. Then you simply fill out online registration form on HMRC website.
Good Luck with the business! 🙂
Thanks,
Andrew
Thank you Andrew, much appreciated. Thanks to you Im now confident to put my first order through my business account. All the best Chris
You’re welcome Chris!
Good Luck with the business!
Andrew
Hi there i wonder if you can help. I received a couple a shipments (several boxes at a time) from from my supplier via FedEx. I’m just a little confused as never been asked for an extra payment for duty/vat. I was fully expecting a call or invoice but nothing received other than the goods. Does this sound unusual?
Hi Daniel,
I think FedEx is that one courier that often just delivers goods first and then sends invoice for taxes later on.
How long has it been since you received your order?
I have heard of cases where these invoices are sent only 30-40 days after delivery.
Another option of course is that they haven’t taxed your shipment at all. Very un-likely though if, as you say, it was several boxes in each shipment.
What you should do is simply contact/call FedEx and ask them about tax status for your shipments. If you ordered goods for your business, you’ll still have to pay VAT and import duty to properly book these transactions into your accounting system.
Thanks,
Andrew
Hi brilliant Blog
Can I just clarify this point.
I understand that if goods imported are sent in smaller split shipments, you may not be asked to pay import/VAT duties. You state you will still have to pay these to book them into your accounting system. So when exactly would you pay this? Especially if you are not VAT registered. Is it simply a case of incorporating it into your tax return?
Also do you still need an EORI number when using a courier such as DHL? What exactly does an EORI do?
Thank you
Kerry
Hi Kerry,
You pay VAT & import duty when goods arrive in the UK – if it’s via regular mail, you pay this at local post office. If it’s a courier – they will invoice you for taxes. And then you just book these expenses accordingly.
Yes, you may still need EORI number when using a courier company. Please take a look @ my EORI guide here:
http://andrewminalto.com/eori-number/
Thanks,
Andrew
Thank you for your quick response.
I think the point I’m getting at is if I’m not invoiced because they are split shipments and under the limit am I under an obligation to declare cumulative shipments?
I only ask because a supplier suggested sending out in small shipments and it’s unlikely I will be asked to pay tax. This doesn’t sound right to me. If I put it through my books, surely the tax man will say I have to pay the levies on the cumulative amount? And if so, how do I pay if the goods have already ‘slipped’ though.
Many thanks.
yes, exactly.
If goods have “slipped through”, you have to contact HMRC Customs and inform them about this fact. Then they’ll guide you though the process on paying correct taxes.