Importing

Wig

Anyone got some experience of importing stuff into UK. I like the idea of importing goods and selling them. I like to cut out all the middle men.

But I haven't got the first clue. I live near Barry in South Wales and Cardiff, both of which have docks.

I won't specify a product, because I have a few ideas.

I'm interested in the buying process. So far I have learned that manufacturers (and wholesalers in UK) are very closed lipped when you ask them for information like a minimum order and price list. The UK wholesaler I spoke to wanted to know all sorts of details about me (& my company) before discussing anything with me - I don't have a company - All I wanted was a flippen price, so I could consider the economics of the idea before I set myself up as a trader. Why are these people so reluctant to give out a price?

Anyway I digress from the point.

Let's say I email a manufacturer in Malaysia. I want to know minimum order for product XXX. I want the FOB price (free onboard). I would just ask those questions, is that the best way to do it or should I be doing it in a different way? Should I haggle or expect to be able to haggle?

Now how about freight charges. With an FOB price offered does the manufacturer arrange the freight (I mean just arrange it not pay for it) - or could the manufacturer arrange the freight if I asked them to?

If I have to arrange my own freight... who provides the container?
Does the manufacturer come to the port and offload into a container themselves, or do they deliver to the frieght co. who then load my order into a container.

When the ship arrives here, who unpacks the container? The frieght Co. or me?

When do I pay VAT?

How long do I get to take my stuff from the UK port? Can I do it in multiple runs? Is there a daily storage charge?

I suppose insurance can be arranged at the time of booking the container allocation with the freight Co.


Anything and everything about the process would be appreciated.

Thanks.

Tooticky

Blimey I think the first thing to do is go here http://www.insolvencyhelpline.co.uk/business_advice/international_trade/imports_exports/importing.htm that should answer most of it, (there are a shed load of additional links at the bottom.)

And if not then get in touch with these guys: www.businesslink.gov.uk and they'll point you in the right direction.

Also HM revenues and customs will point you in the right place for the specific goods.

Not the most helpful of replies I grant you, but it should address everything you have asked for, good luck

martindow

We have imported various things from China and Nepal. I suggest that you use a business name if you don't already have one. There is no problem with this with the UK tax people "Wig trading as xxxx". It does no harm to give the impression that you are a larger organisation than you actually are. Personally I would not ask initially about minimum values as there is some advantage in giving the impression that you may be buying a lot from them. We generally ask for prices of things we are interested in as this will give an idea of quantities as they will usually send prices for 50 pieces or 100kg or whatever. We then ask for a pro forma for an order we specify and ask them to quote for carriage and insurance to the door rather than to a port or airport. Clearance charges and onward carriage can add up to a surprising and unexpected amount. If a carrier is used they will organise customs clearance and charge typically 15 pounds per consignment plus any duty and VAT charges (remember VAT will be payable on the total cost of goods and carriage). Work out the overall cost and be sure that it makes sense financially.

If the exporter tries to push us into buying larger 'minimum' quantities we reply that for our first order we would like to order a smaller amount to establish trust and a trading relationship. Typically our first orders are around 500 pounds. One you have bought in smaller than standard quantities you will find that they are likely to keep supplying in the same amounts if that is what you wish. It pays to always be very polite and deferential in emails. It is a good idea to check and get confirmation of specifications and so on as it is very easy for mistakes to be made as you are not working in their first language. It is not feasible or economical to return things so you want to be confident that you will be getting what you expect. It also helps you build up trust because they are likely to want a bank transfer to them before they dispatch your order.

We have dealt with several suppliers on this basis. Because the orders are relatively small they are usually airfreighted across. You need to know your suppliers well. The people we deal with we have found by Googling for manufacturers. They are not people putting themselves forward as wholesalers or suppliers.

Good luck and hope it goes well.

Bagsobrands

Have a look on the wholesalers uk forums, loads of advice on how to start what to ask what the hidden costs are e.t.c.

Why Import ? I know some wholesalers are a bit touchy and want to protect their existing membership but there are plenty out there who would be quite happy to serve you. many are now online. I work for an online wholesale company and we advertise our prices for all to see. The market is changing with the onset of ebay and wholsalers need to keep up.
Bagsobrands

Wig

martindow wrote: »

We then ask for a pro forma for an order we specify and ask them to quote for carriage and insurance to the door rather than to a port or airport. .

You ask for DDU / DDP then? Probably able to that because your items are small/easily trasportable, hence the air frieght.

snookerman

well..im from indonesia and im doing business in shanghai,china.if u need something in asia..just let me know..whatever it is..i can provide it for u..i got a very closed friend in uk who can meet and deal with u there..please pm me if u need..

martindow

Wig wrote: »

You ask for DDU / DDP then? Probably able to that because your items are small/easily trasportable, hence the air frieght.

We just ask them to quote for carriage to us. Previous efforts with things sent to UK dockside or airport ended up with surprisingly large release fees and the need to pay an agent. Air freight seems to be quite reasonable for small consignments (ours are up to 150kg) and not too much volume. I suppose the economics depend on what you are importing. We sell niche products but if there is lots of competition I imagine you need to import huge amounts in container loads to compete and obviously ship by sea.

never_red_Paul

Wig wrote: »

Now how about freight charges. With an FOB price offered does the manufacturer arrange the freight (I mean just arrange it not pay for it) - or could the manufacturer arrange the freight if I asked them to?

FOB means your supplier will pay all charges incurred upto the point the good are loaded onto the vessel. Any charges incurred thereafter are your responsibility. These will include:
- Shipment cost
- Terminal Handling Charges
- Uk Customs entry
- Vat and Duty
- Use of your shipping agent's deferment account (this is how they pay the Vat on your shipment)
- Onward delivery charge from port to the address you want to receive the goods

Some freight companies will break these down, some will give you a door to door rate per cubic metre of product.

Your supplier can pay these charges for you and include it in the price they quote you, which is usually referred to as CNF or CIF, personally I would not recommend this as you are not in control of the shipping and the supplier may use the cheapest vessels with the poorest most unreliable service available.

If I have to arrange my own freight... who provides the container?
Does the manufacturer come to the port and offload into a container themselves, or do they deliver to the frieght co. who then load my order into a container.

When the ship arrives here, who unpacks the container? The frieght Co. or me?

You'll be shipping LCL if you use sea freight meaning your goods will be packed into a container with other peoples products; the container will then be unpacked (referred to as devanned) by the freight company at their premises or by a company they employ located at / near the docks, then they'll arrange delivery to your nominated address.

When do I pay VAT?

You'll have to pay the Vat and Duty to the freight company before they release the goods to you, you will not get credit terms on this. The freight company may charge you for (around £15 usually) for the use of their deferment account, though this may be lumped in with the freight charge they quote you.

How long do I get to take my stuff from the UK port? Can I do it in multiple runs? Is there a daily storage charge?

You get 7 days free storage at the port, after that you'll start to accrue charges, but they're not extotionate.

I suppose insurance can be arranged at the time of booking the container allocation with the freight Co.

The best option is an annual marine insurance policy.

Anything and everything about the process would be appreciated.
Thanks.

I agree with what martindow has said. I've worked in importing for longer than I would like, if you have any specific questions feel free to PM and I'll try to help.

never_red_Paul

crap, I put all my text in italic to differentiate it from yours but forgot that all quotes get put in italics, my reply is in there and I hope it makes sense.