Import advice

Wig

I am considering importing from S.E. Asia, electrical products. The product I want is already sold in UK by a large reputable company so I have no worries about how safe the claimed CE mark is given by the manufacturer.

My worries are that I have never imported before, so I have no experience in this area.

Things like price negotiation, when and how to effect payment, which could be thousands of pounds, how safe my payment will be to a company on the other side of the world.

Arranging freight & insurance
Freight agents, weblinks, costs etc.

Wondering what the manufacturer offers in terms of freight (I have asked)
FAS Free along side ship
FOB Free on board
CFR Cost and frieght to port destination
CIF Cost, Insurance and Freight

Wondering about what the logistics of all these will be. The most likely offered will be one of the first two. Will I have to fly out to meet my consignment at the export port to personally oversee it and sign it off?

Dealing with HMCE and paying the relevant duties VAT, if they are payable, and arranging road transport in UK (least of my problems).

So if you know about these things or if you know anyone who does (please ask them)..... let me know some pointers of how I should expect things to come about.

Thanks

Pythagorous

Wade world do a decent course on the intricacies of import /export.

A quick search on ebay would probs be the best place to buy it.

LittleWoman_3

Wig wrote:

Things like price negotiation, when and how to effect payment, which could be thousands of pounds, how safe my payment will be to a company on the other side of the world.

Ask for 30 days credit - if they won't give it to you, go and speak to your bank - you have several options, but most popular are "Documentary Letters of Credit". You give the bank the money and they only release the money according to the terms of of the DC (or LC depending on which bank!) which can include all sort of stuff (you see some of the outrageous stuff the Chinese put in theirs!)

Wig wrote:

Arranging freight & insurance
Freight agents, weblinks, costs etc.

Wondering what the manufacturer offers in terms of freight (I have asked)
FAS Free along side ship
FOB Free on board
CFR Cost and frieght to port destination
CIF Cost, Insurance and Freight

Wondering about what the logistics of all these will be. The most likely offered will be one of the first two. Will I have to fly out to meet my consignment at the export port to personally oversee it and sign it off?

If you buy EXW (ex works) you have to organise collection through to delivery. The ones you've quote - the supplier arranges (and normally bills you) for doing it for you. If you use your own shipper (lots arround) then you can control the costs. The shipper works with both supplier and customer (to keep things simplier for them and everyone - and so you'll use them again!)

Wig wrote:

Dealing with HMCE and paying the relevant duties VAT, if they are payable, and arranging road transport in UK (least of my problems).
Thanks

You need to find out the tariff - normally quoted on the "commercial invoices" that accompany the goods. This decides how much duty you will have to pay. VAT is normally the killer - if you don't have a "deferment account" with HMRC (bank will charge for guarenteing 2x your deferment limit) then you will have to pay any duty and VAT before the goods are released. Any delays mean you also may have to pay storage etc.

Find yourself a good shipper with contacts in the country you are importing from - they will give you most of the help you need. Also insurance - in the UK is cannot be arranged through the shipper! Speak to a insurance broker (if you do lots, you may be able to arrange an annual multi shippment policy).

buglawton

1. Find a supplier you can trust to send money to.
2. Get quotes based on FAS, FOB etc as per Wig's post.
3. If China: Not all manufacturers in China are allowed to export so many factories use an agent. He will add on a percentage fee and arrange the complete shipment as far as UK port. That agent should understand which EU Commodity Code applies to your shipment.
4. Get a UK forwarding agent to handle the extrication of your goods from UK port and delivery to your door in one. He will bill you for the Tax plus UK VAT and sundries. Expect around 20% tax inc VAT depending on Commoditiy Code, charged on the LANDED COST ie inc shiipping & insurance.

If you want to look up the before-VAT tax that will be applied for the product you have in mind, go here:

http://ec.europa.eu/taxation_customs/dds/en/tarhome.htm

You can PM me for the 2 UK agents we have used which are relatively small co's much cheaper than the 'big boys'.