I need help

sugar.lady

Hi, i plan on importing baby clothes from a supplier in China. what is the likelyhood that I will be hit by Customs?
I need an advice as its my first time

antrobus

sugar.lady wrote: »

Hi, i plan on importing baby clothes from a supplier in China. what is the likelyhood that I will be hit by Customs?
I need an advice as its my first time

I'd say that there was about a 100% certainty that you will be hit by Customs. Importing goods without paying the VAT and duty due is known as smuggling. I'm not saying it can't be done, it just requires a certain level of organisation, and entails risk.

Now I'm sure that's not what you mean. What your probably mean is, if I order £500 worth of cheap gear from China, how will HMRC know? They'll know because the carrier will tell them and act as your agent in clearing the goods through customs, and won't let you have them until you've paid.

paddyrg

Once you pay shipping and duty (no VAT on kids clothes?) you may find the margins are much lower than you think. Places like Primark buy in such volume at such low margins, it may be cheaper to go there.

sugar.lady

Thank you for your replies, do you know how much the duty rate is?

paddyrg

http://www.dutycalculator.com/

paddyrg

Making a load of guesses (£150 for shipping and insurance, woven cotton sets) it looks like duty on £500 of baby clothes would be in the region of £78 (12% of the landed cost), no VAT. (Plus handling charges by your shipping agent)

Buzzman_2

paddyrg wrote: »

Once you pay shipping and duty (no VAT on kids clothes?) you may find the margins are much lower than you think. Places like Primark buy in such volume at such low margins, it may be cheaper to go there.

I agree with paddyrg - when you factor in all the costs (including storage if you are renting space) you may find the margins look a lot less attractive. But it's important to be honest with yourself from the start. Sometimes importing only makes sense when you are ordering significant volume or when you cannot source locally

patman99

I read on one of the wholesale sites that if you import from Hong Kong then no duty is payable as it is a 'free port'. Not sure how true this is, but it would explain why all the stuff I buy from abroad attracts duty with the exception of the bits shipped from HK, which to date, have attracted no duty charges whatsoever.

sugar.lady

patman99 wrote: »

I read on one of the wholesale sites that if you import from Hong Kong then no duty is payable as it is a 'free port'. Not sure how true this is, but it would explain why all the stuff I buy from abroad attracts duty with the exception of the bits shipped from HK, which to date, have attracted no duty charges whatsoever.

hove you ever paid for any bits bought from HK ?

Owain_Moneysaver

As well as having to pay Customs duty, as importer into the EU you are responsible for compliance with all safety and labelling regulations and all product liability issues, eg if a baby chokes on a loose button.

If you don’t fulfil your duties you can face prosecution resulting in a fine or prison. Anyone who was injured by your unsafe product – even if you sold the product to someone else – can take a civil action against you if they have been injured or have suffered damage to personal property.

Liability for unsafe products is strict: you can't avoid liability by warning people the product isn't safe and there is no need for the injured party to prove negligence on your part. They just need to prove the product was defective and the defect in the product caused the injury.

Lawyerlocator

See also bis.gov.uk