Buying from China and USA

Caseyface

Hi

I am currently in the middle of trying to set up my own small business selling mainly clothing items. I want to make sure i will be paying the correct charges on anything imported. I've done some research, as the goods will probably be under £200 per time i understand that i have to fill out a CN22 form, is that right?

Do i fill this out as the importer or does the seller?

Any info on paying correct vat and customs charges are appreciated.

Thanks.

martindow

The CN22 form is for exporting with Royal Mail out of the UK so is not relevant for imports.

Your suppliers will provide paperwork for customs clearance in the UK but you will need to pay the bill. Assuming this would be coming with a carrier you would expect to pay duty which varies with items but is typically a few per cent, 20% VAT on the cost of the goods plus the carriage cost and a clearance fee of 8-15 pounds depending on who is is sent with. Some carriers will expect payment before they deliver others invoice you a few days after delivery.

nikki1520

Don't just rely on the clearing agent though- make sure you understand the process and have your goods correctly classified. You should always put your instructions to your agent in writing.

lovinituk

Caseyface wrote: »

I am currently in the middle of trying to set up my own small business selling mainly clothing items.

Please say you are not buying branded clothing from China? Any branded clothing that you buy from China will be fake. At best, it will get through customs but a customer will eventually complain or at worst, it will be siezed at customs, destroyed and you won't see a penny back for it.

You also need to be careful about buying clothing from the US - if its not fake it could be classed as a grey import and not legally allowed to be sold in the UK/Europe even if its genuine.

Caseyface

lovinituk wrote: »

Please say you are not buying branded clothing from China? Any branded clothing that you buy from China will be fake. At best, it will get through customs but a customer will eventually complain or at worst, it will be siezed at customs, destroyed and you won't see a penny back for it.

You also need to be careful about buying clothing from the US - if its not fake it could be classed as a grey import and not legally allowed to be sold in the UK/Europe even if its genuine.

Absolutely not. Just fashionable clothing, no brands atall.

jackyann

If you go onto the HMRC website, it is all explained - can't give the direct link, but I used it when I bought some clothes from the USA (for personal use). It was quite easy, I paid the money to the Post Office who had an arrangement with HMRC. I do buy some sewing supplies from the USA (wider choice than here) but usually go under the amount that tax is chargeable (£22 from memory).
However, i don't know if different rules apply for commercial re-sale.

lovinituk

Caseyface wrote: »

Absolutely not. Just fashionable clothing, no brands atall.

Thanks, good to hear. Its scary how many people don't realise the risks with branded goods.

Caseyface

lovinituk wrote: »

Thanks, good to hear. Its scary how many people don't realise the risks with branded goods.

Totally agree. So many selling pages on f.book at the minute which are selling 'branded' goods. I'm on the HMRC website and still struggling to get my head round it all.

The chances of finding a good supplier who fills in the paperwork correctly at their end are perhaps slim?

Caseyface

martindow wrote: »

The CN22 form is for exporting with Royal Mail out of the UK so is not relevant for imports.

Your suppliers will provide paperwork for customs clearance in the UK but you will need to pay the bill. Assuming this would be coming with a carrier you would expect to pay duty which varies with items but is typically a few per cent, 20% VAT on the cost of the goods plus the carriage cost and a clearance fee of 8-15 pounds depending on who is is sent with. Some carriers will expect payment before they deliver others invoice you a few days after delivery.

Martin how do i pay the bill to customs? Will they just contact me?

lovinituk

Caseyface wrote: »

Totally agree. So many selling pages on f.book at the minute which are selling 'branded' goods. I'm on the HMRC website and still struggling to get my head round it all.

The chances of finding a good supplier who fills in the paperwork correctly at their end are perhaps slim?

Do your research on the sellers and don't rush into it. One item I sell is packaged to our own design - it took me nearly a year to find and confirm the manufacturer we ended up using. They complete the paper work correctly.

You need to be careful with Chinese sellers who say they are manufacturers, factories or distributors - a lot of them are just members of the public, quite often students, who will take your order/money and then rush out to the local market or factories to source the goods before sending them out to you. Not always a bad thing but does introduce other risks.

The biggest risk with the paper work is the seller undervaluing the value of the package. At best it will get through to you with no charges (although you should then declare the true value with HMRC and pay your dues) - at worst it will be stopped at customs who don't believe the declaration and they could over-estimate the value meaning you pay too much (can be claimed back but is a hassle and takes ages).

lovinituk

Caseyface wrote: »

Martin how do i pay the bill to customs? Will they just contact me?

If it comes via EMS out of China, or via USPS out of USA it will be passed onto Parcelforce in the UK. PF will send you a letter telling you how much you owe and will not release the delivery until you have paid.

If it comes via most of the usual couriers (Fedex, UPS, DHL, etc, etc), they will usually deliver and then invoice you later for the amount you owe for VAT/duties.