Importing From China
July 4, 2008
Importing From China
Importing From China
By William King
It has not been long before China was seen as a nation specializing in low cost replicas with absolutely no focus on quality and value. China however had no intention of remaining just a low-cost source of third class imitated products. With steps taken by their Government like revolutionizing their educational system and giving benefits to the companies that bring technology to the country, China has successfully managed to break the notion. According to PRC General Administration of Customs, the top exports of china in the year 2007 were electrical machinery & equipment and power generation equipment respectively. That’s a significant shift from agriculture sector to industrial. China is now world’s largest exporter of technology goods. Even the country like Japan is among the top 5 countries, importing from China.
Although, importing from China with such positives may look like a source of easy money, it has its fair share of negatives. So before you embark upon the idea of starting imports from china with dreams of huge profits in your mind, you must not overlook these problems which might occur once you get into this trade.
1. Finding Suppliers:
While finding a supplier from China seems like a walk in the park (there are so many on internet and yellow-pages), it isn’t that easy. Reason, you cannot just trust any supplier which comes your way while searching on the internet. Check for credibility; find some well known company rather then just choosing the one with lowest price quotes.
2. Payment Issues:
Most important thing when striking out a deal with some Chinese exporter is to finalize the payment method with him. Issues like payment method, currency in which payment will be made, how much will you pay in advance? Should be discussed and settled as soon as possible, to avoid complications in future.
3. Communication:
Another hurdle which has been there for long is communication problem. Although more and more Chinese now seems interested in learning English to expand their opportunities, it will take some time before they start getting familiar with English language norms. Till then you have to rely on your communication skills and ability to convey your message clearly. Know the terms used in this part of the world. When making an order, be very clear in your product specifications. Re-check by inquiring, what they understand of your instructions. Clearly state what should be produced and how it should be produced. Give crystal clear instructions on what material should be used, or you will end up having “lead painted toys”.
4. Quality Control Problems:
Very recently issues like kid’s toys having lead paint, or livestock and pet food having chemicals, injurious to animal’s health have raise eyebrows over quality of China’s exports. Problem lies partially at Chinese manufacturer’s side and partially in drastic efforts to cut cost to its minimum. While your prime reason for importing from China is “low-cost”, make sure you are getting products which don’t fall below standards of your market. Arrange for some agent or third party in China which will ensure quality check on your part before your order is shipped to you.
William King is the director of UK Wholesalers and Dropshippers Directory and Wholesale Suppliers & Dropship Directory. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
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UK Import Duty - Calculating Import Taxes For Goods Imported From the USA to the UK
July 4, 2008
UK Import Duty - Calculating Import Taxes For Goods Imported From the USA to the UK
By Andrew Gardner
Why Buy from America?
Many people travel to America, particularly New York, with the sole intention of shopping. The reasons for this are clear: wider choice and cheaper prices. In many cases, the savings made will actually pay for the trip. Strangely, those very same people may be unwilling to buy the same items online from the comfort of their own home because they are concerned that the import duty and tax will make the item more expensive than buying locally within the UK.
The purpose of this article is to explain the UK import duty charges and show that you can buy goods from the USA and still make considerable savings over UK prices.
Will I be charged?
Not every package will be charged - commercial consignments under £18 or gifts less than £36 are free from import duty and VAT. Also, some suppliers will deliberately label a package as a gift or under-value the contents to fall under the taxable threshold. Bear in mind that you, as the importer, are responsible for ensuring that this information is accurate. Worst case scenario - the goods can be confiscated if is felt that you tried to deliberately avoid paying import duty. However, it’s not very likely that this will happen.
Calculating the charges
- Determine the import duty for the product type you are importing. You can find this information from the TARIC database (Integrated Tariff of the European Community) e.g. Sunglasses have an import duty of 2.9% (US to UK)
- Combine the product price and delivery charges together to give a total price
- Convert dollars to pounds - use a currency converter site.
- To this total price add on the % import duty
- To the price obtained from Step 4, add on 17.5% VAT
- Add on an administrative charge applied by the carrier to process the item through customs (currently Royal Mail charges up to £8)
Worked Example
A £100 pair of sunglasses, with £15 delivery charges would have a total cost of £115. To this you would add 2.9% import duty of £3.34 to give £118.34; add 17.5% VAT to this figure which gives £118.34 + £20.71 = £139.05. Finally, allow up to an £8 charge by the carrier to give a final total of £147.05. Having paid the initial £115 to the supplier, you would then pay £32.05 to the carrier on delivery of the item.
Conclusion
By using the procedure detailed above, you can calculate the final price after import duties have been applied and then compare that price with the cheapest UK online stores. With all these charges being applied, it may seem hard to believe that it can be cheaper to import an item from America - but believe me, for many items it is much cheaper. Not only do you get to save money, but you open up a whole new marketplace that previously you may have ignored.
Resources
1) Find the import duty for your product category at the TARIC database.
2) Convert dollars to GB pounds at a currency converter site.
(c) Copyright - Andrew Gardner. All Rights Reserved Worldwide.
About the Author
“Like designer sunglasses but not prepared to pay sky-high prices?”
Buy authentic designer sunglasses for half-price at http://www.apairsunglasses.co.uk if buying in the UK or http://www.apairsunglasses.com if buying in the US.
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